On January 1, 2022. TGIG sold equipment with historical cost of P10,000,000 and accumulated depreciation of P5,500,000 in exchange for a P6,000,000 non-interest bearing note due in annual installments as follows: December 31, 2022 - P3,000,000 December 31, 2023 - P2,000,000 December 31, 2024 - P1,000,000 There was no exchange price for the equipment. The prevailing rate of interest for a note of this type on January 1, 2022 was 10%. (Round off present value factors to four decimal places.)
On January 1, 2022. TGIG sold equipment with historical cost of P10,000,000 and accumulated depreciation of P5,500,000 in exchange for a P6,000,000 non-interest bearing note due in annual installments as follows: December 31, 2022 - P3,000,000 December 31, 2023 - P2,000,000 December 31, 2024 - P1,000,000 There was no exchange price for the equipment. The prevailing rate of interest for a note of this type on January 1, 2022 was 10%. (Round off present value factors to four decimal places.)
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
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 11P
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What is the carrying amount of the note as of December 31, 2022?
![On January 1, 2022. TGIG sold equipment with historical cost of P10,000,000 and accumulated
depreciation of P5,500,000 in exchange for a P6,000,000 non-interest bearing note due in annual
installments as follows:
December 31, 2022 – P3,000,000
December 31, 2023 – P2,000,000
December 31, 2024 – P1,000,000
There was no exchange price for the equipment. The prevailing rate of interest for a note of this type on
January 1, 2022 was 10%. (Round off present value factors to four decimal places.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F925dba2e-5496-4bec-824d-e314c61db5bd%2F273e44f0-db87-4f29-8547-65ceefb0b053%2Fyvcmzqn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On January 1, 2022. TGIG sold equipment with historical cost of P10,000,000 and accumulated
depreciation of P5,500,000 in exchange for a P6,000,000 non-interest bearing note due in annual
installments as follows:
December 31, 2022 – P3,000,000
December 31, 2023 – P2,000,000
December 31, 2024 – P1,000,000
There was no exchange price for the equipment. The prevailing rate of interest for a note of this type on
January 1, 2022 was 10%. (Round off present value factors to four decimal places.)
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