On January 1, 2021, Nicaragua Company purchased a machine from Argentina Company amounted to P1,000,000. Argentina issued a noninterest-bearing note with an effective interest rate of 15% as payment. It is payable in 5 equal payments beginning December 31, 2021. The company uses 2 decimal places for PVF. How much is the current portion of the note payable on December 31, 2021?
On January 1, 2021, Nicaragua Company purchased a machine from Argentina Company amounted to P1,000,000. Argentina issued a noninterest-bearing note with an effective interest rate of 15% as payment. It is payable in 5 equal payments beginning December 31, 2021. The company uses 2 decimal places for PVF. How much is the current portion of the note payable on December 31, 2021?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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On January 1, 2021, Nicaragua Company purchased a machine from Argentina Company amounted to P1,000,000.
Argentina issued a noninterest-bearing note with an effective interest rate of 15% as payment.
It is payable in 5 equal payments beginning December 31, 2021.
The company uses 2 decimal places for PVF.
How much is the current portion of the note payable on December 31, 2021?
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