On January 1,2021, Mickey Mouse Corporation sells a Furniture and Fixtures costing P800,000 and with accumulated depreciation of P350,000 as of January 1,2021. The company receives 5-year, P400,000, 12% note. The 12% interest rate is a realistic rate of interest for a note of this type. How much is the gain or loss on sale of the furniture and fixtures? 50,000 loss 50,000 gain 48,000 loss 48,000 gain

On January 1,2021, Mickey Mouse Corporation sells a Furniture and Fixtures costing P800,000 and with accumulated depreciation of P350,000 as of January 1,2021. The company receives 5-year, P400,000, 12% note. The 12% interest rate is a realistic rate of interest for a note of this type. How much is the gain or loss on sale of the furniture and fixtures? 50,000 loss 50,000 gain 48,000 loss 48,000 gain

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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On January 1,2021, Mickey Mouse Corp sells a Furniture and Fixtures costing P1,200,000 and with accumulated depreciation of P550,000 as of January 1,2021. The company receives 5-year, P500,000, 12% note. The stated interest in unrealistic since the prevailing rate of interest for a note of this type is 14%. How much is the interest income to be recognized in December 31, 2022? 65,196 65,923 66,753 67,698
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