On January 1, 2022, ABC Company signed a note payable to a bank for P3,000,000 with a stated rate of 10%. Interest is payable semi-annually every June 30 and December 31. ABC pledged its delivery truck with a book value of P5,000,000 as a collateral. The delivery truck is being depreciated over a remaining life of five years using the sum-of-years digits. During 2022, ABC Company was able to pay off the required interest payments. On February 28, 2023, ABC announced bankruptcy and underwent liquidation. On February 29, 2023, ABC was able to sell all of its non-cash assets. Specifically, ABC was able to get P2,500,000 for its delivery truck used to secure the note with the bank. As per computation by the trustee, unsecured liabilities without priorities will receive 30% of their claims. How much is the amount to be paid as settlement of the note payable at the end of February?
On January 1, 2022, ABC Company signed a note payable to a bank for P3,000,000 with a stated rate of 10%. Interest is payable semi-annually every June 30 and December 31. ABC pledged its delivery truck with a book value of P5,000,000 as a collateral. The delivery truck is being
How much is the amount to be paid as settlement of the note payable at the end of February?
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