On January 1, 20x1, PRISM Co. acquired machinery by issuing a 3-year, P1,200,000 noninterest-bearing note payable due as follows:Date Amount of installmentDecember 31, 20x1 600,000December 31, 20x2 400,000December 31, 20x3 200,000TOTAL 1,200,000The prevailing rate of interest for this type of note is 10%.How much is the carrying amount of the note on December 31, 20x1?Select the correct response:867,3121,026,296528,926489,762

The present value of a future cash flow is the amount of all future cash flows. The present value of…

On January 1, 20x1, PRISM Co. acquired machinery by issuing a 3-year, P1,200,000 noninterest-bearing note payable due as follows: Date Amount of installment December 31, 20x1 600,000 December 31, 20x2 400,000 December 31, 20x3 200,000 FOTAL 1,200,000 he prevailing rate of interest for this type of note is 10%. How much is the carrying amount of the note on December 31, 20x1? Select the correct response: 867,312 O 1,026,296 528,926 O 489,762

On January 1, 20x1, PRISM Co. acquired machinery by issuing a 3-year, P1,200,000 noninterest-bearing note payable due as follows: Date Amount of installment December 31, 20x1 600,000 December 31, 20x2 400,000 December 31, 20x3 200,000 FOTAL 1,200,000 he prevailing rate of interest for this type of note is 10%. How much is the carrying amount of the note on December 31, 20x1? Select the correct response: 867,312 O 1,026,296 528,926 O 489,762

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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