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 current market rate of interest on January 1, 20x1 is 12%. How much is the carrying amount of the note on initial recognition? (Hint Mind the payment dates.) O a. 7,740,084 O b. 7,124,844 Oc. 7,412,769 O d. 7,658,901
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 current market rate of interest on January 1, 20x1 is 12%. How much is the carrying amount of the note on initial recognition? (Hint Mind the payment dates.) O a. 7,740,084 O b. 7,124,844 Oc. 7,412,769 O d. 7,658,901
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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