On January 1, 20x1, SCRUPULOUS EXACT Co, acquired a piece of equipment by issuing a P12,000,000, non-interest bearing note that is payable in three equal annual installments starting January 1, 20x4. The currentmarket rate of interest on January 1, 20x1 is 12%. How much is the carrying amount of the note on initialrecognition?(Hint Mind the payment dates.)O a. 7,740,084O b. 7,124,844O c. 7,412,769O d. 7,658,901

The question is based on the concept of Financial accounting.

Answered: On January 1, 20x1, SCRUPULOUS EXACT…

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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