On May 1, 2021, BB received a 3-year, P1,200,000 note receivable due on April 30, 2024. The note was received upon sale of an old machinery of BB which is no longer use in its operation. The interest effective of similar note is at 7%. Statement 1: The carrying value of the note as of December 31, 2022 is P1,097,039. Statement 2; The interest income for the period ending December 31, 2022 is P71,770. Group of answer choices Only statement 2 is true Both statements are true Only statement 1 is true Both statements are false
On May 1, 2021, BB received a 3-year, P1,200,000 note receivable due on April 30, 2024. The note was received upon sale of an old machinery of BB which is no longer use in its operation. The interest effective of similar note is at 7%. Statement 1: The carrying value of the note as of December 31, 2022 is P1,097,039. Statement 2; The interest income for the period ending December 31, 2022 is P71,770. Group of answer choices Only statement 2 is true Both statements are true Only statement 1 is true Both statements are false
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On May 1, 2021, BB received a 3-year, P1,200,000 note receivable due on April 30, 2024. The note was received upon sale of an old machinery of BB which is no longer use in its operation. The interest effective of similar note is at 7%.
Statement 1: The carrying value of the note as of December 31, 2022 is P1,097,039.
Statement 2; The interest income for the period ending December 31, 2022 is P71,770.
Group of answer choices
Only statement 2 is true
Both statements are true
Only statement 1 is true
Both statements are false
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