On January 1, 2021, My Universe Corporation issued a three-year, non-interest bearing note with face value of P3,000,000 for a piece of land purchased from Permission to Dance Corporation. The note is payable in annual installments of P1,000,000 every December 31, starting December 31, 2021. The land has an equivalent cash price of P2,400,000, a price that provides the note an effective interest of 12.0444%. How much is the Notes Payable, net of discount, should be reported as current liability as of December 31, 2021? A. P892,503.32 B. P796,562.18 C. P710,934.40 D. P1,000,000

On January 1, 2021, My Universe Corporation issued a three-year, non-interest bearing note with face value of P3,000,000 for a piece of land purchased from Permission to Dance Corporation. The note is payable in annual installments of P1,000,000 every December 31, starting December 31, 2021. The land has an equivalent cash price of P2,400,000, a price that provides the note an effective interest of 12.0444%. How much is the Notes Payable, net of discount, should be reported as current liability as of December 31, 2021? A. P892,503.32 B. P796,562.18 C. P710,934.40 D. P1,000,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 10MC: On January 1, 2019, Park Company accepted a 36,000, non-interest-bearing, 3-year note from a major...

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