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. А. В. C. D. 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 А. В. С. December 31, 2021? 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. А. В. C. D. 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 А. В. С. December 31, 2021? 600,000 450,000 544,500 495,000
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter6: Cash And Internal Control
Section: Chapter Questions
Problem 6.3E
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