On January 1,2021, Mickey Mouse Corporation sells a Furniture and Fixtures costing P1,500,000 and with accumulated depreciation of P800,000 as of January 1,2021. The company receives 4-year, P600,000 note. The note is a non-interest bearing note and the prevailing rate of interest for a note of this type is 12%. How much is the current portion of the Notes Receivable at the end of December 31, 2021?
On January 1,2021, Mickey Mouse Corporation sells a Furniture and Fixtures costing P1,500,000 and with accumulated depreciation of P800,000 as of January 1,2021. The company receives 4-year, P600,000 note. The note is a non-interest bearing note and the prevailing rate of interest for a note of this type is 12%. How much is the current portion of the Notes Receivable at the end of December 31, 2021?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On January 1,2021, Mickey Mouse Corporation sells a Furniture and Fixtures costing P1,500,000 and with accumulated depreciation of P800,000 as of January 1,2021. The company receives 4-year, P600,000 note. The note is a non-interest bearing note and the prevailing rate of interest for a note of this type is 12%. How much is the current portion of the Notes Receivable at the end of December 31, 2021?
- Zero
- 150,000
- 172,944
- 381,300
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