On January 2, 2020, Zyrus Company sold equipment with a carrying amount of P480,000 in exchange for a P600,000 non-interest bearing note due January 2, 2023. There was no established exchange price for the equipment. The prevailing rate of interest for a note of this type at January 2, 2020 was 10%. The present value of 1 of 10% in three periods is .75 while the present value of ordinary annuity of 1 of 10% in three periods is 2.49. 8. What is the interest income for December 31, 2021? 45,000 49,500 54,450 60,000 A. В. C. D. Computation: 600,00 x .75 = 450,000 x 10% = 45,000 9. December 31, 2021? A. В. C. D. Refer to the information in Question No. 8. What is the carrying value of the note on 600,000 450,000 544,500 495,000
On January 2, 2020, Zyrus Company sold equipment with a carrying amount of P480,000 in exchange for a P600,000 non-interest bearing note due January 2, 2023. There was no established exchange price for the equipment. The prevailing rate of interest for a note of this type at January 2, 2020 was 10%. The present value of 1 of 10% in three periods is .75 while the present value of ordinary annuity of 1 of 10% in three periods is 2.49. 8. What is the interest income for December 31, 2021? 45,000 49,500 54,450 60,000 A. В. C. D. Computation: 600,00 x .75 = 450,000 x 10% = 45,000 9. December 31, 2021? A. В. C. D. Refer to the information in Question No. 8. What is the carrying value of the note on 600,000 450,000 544,500 495,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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ANSWER NO. 9 PLS.
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Transcribed Image Text:On January 2, 2020, Zyrus Company sold equipment with a carrying amount of P480,000
in exchange for a P600,000 non-interest bearing note due January 2, 2023. There was no
established exchange price for the equipment. The prevailing rate of interest for a note of this
type at January 2, 2020 was 10%. The present value of 1 of 10% in three periods is .75 while the
present value of ordinary annuity of 1 of 10% in three periods is 2.49.
8.
A.
В.
С.
What is the interest income for December 31, 2021?
45,000
49,500
54,450
60,000
Computation:
600,000 x .75 = 450,000 x 10% = 45,000
9.
Refer to the information in Question No. 8. What is the carrying value of the note on
December 31, 2021?
А.
В.
С.
D.
600,000
450,000
544,500
495,000
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