On January 1, 20x1, Mojo Co. sold transportation equipment with a historical cost of ₱20,000,000 and accumulated depreciation of ₱7,000,000 in exchange for cash of ₱500,000 and a noninterest-bearing note receivable of ₱8,000,000 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%. 5. How much is the interest income in 20x1? a. 728,946 b. 678,334 c. 728,964 d. 704,236 with solution please.
On January 1, 20x1, Mojo Co. sold transportation equipment with a historical cost of ₱20,000,000 and accumulated depreciation of ₱7,000,000 in exchange for cash of ₱500,000 and a noninterest-bearing note receivable of ₱8,000,000 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%. 5. How much is the interest income in 20x1? a. 728,946 b. 678,334 c. 728,964 d. 704,236 with solution please.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 20x1, Mojo Co. sold transportation equipment with a historical cost of ₱20,000,000 and
5. How much is the interest income in 20x1?
a. 728,946
b. 678,334
c. 728,964
d. 704,236
with solution please.
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