On January 1, 20x1, ABC sold a used vehicle with a historical cost of P2,000,0000 and accumulated depreciation of P700,000 in exchange for cash of P100,000 and a noninterest bearing note receivable of P1,000,000 due in 4 equal annual installments starting on December 31, 20x1 and every December 31, thereafter. The prevailing rate of interest for this type of note is 12%. On December 31, 20x2, the carrying amount of the note receivable is approximately (use 6-decimal present value factor)
On January 1, 20x1, ABC sold a used vehicle with a historical cost of P2,000,0000 and accumulated depreciation of P700,000 in exchange for cash of P100,000 and a noninterest bearing note receivable of P1,000,000 due in 4 equal annual installments starting on December 31, 20x1 and every December 31, thereafter. The prevailing rate of interest for this type of note is 12%. On December 31, 20x2, the carrying amount of the note receivable is approximately (use 6-decimal present value factor)
Chapter1: Financial Statements And Business Decisions
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14. On January 1, 20x1, ABC sold a used vehicle with a historical cost of P2,000,0000 and
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