On October 1, 2020, ABC Manufacturing sold a tract of land that originally cost P400,000. ABC received a P600,000, 6% note as payment for the land. The principal amount of the note is payable on September 30, 2023. Interest is payable every anniversary dates - September 30, 2021, September 30, 2022 and September 30, 2023. On October 1, 2020, the prevailing rate of interest for a similar obligation is 10%. On this date, there is no available cash price for the land. PV of a single payment at 6%- 0.8396; PV of a single payment at 10%- 0.7513; PV of ordinary annuity at 6%- 2.6730; PV of ordinary annuity at 10%- 2.4869. ABC's accounting period ends on December 31. How much is the amortized cost/carrying value of the note receivable reported in ABC’s statement of financial position at December 31, 2021? A. P558,339 B. P563,298 C. P573,215 D. P578,173
On October 1, 2020, ABC Manufacturing sold a tract of land that originally cost P400,000. ABC received a P600,000, 6% note as payment for the land. The principal amount of the note is payable on September 30, 2023. Interest is payable every anniversary dates - September 30, 2021, September 30, 2022 and September 30, 2023. On October 1, 2020, the prevailing rate of interest for a similar obligation is 10%. On this date, there is no available cash price for the land. PV of a single payment at 6%- 0.8396; PV of a single payment at 10%- 0.7513; PV of ordinary annuity at 6%- 2.6730; PV of ordinary annuity at 10%- 2.4869. ABC's accounting period ends on December 31.
How much is the amortized cost/carrying value of the note receivable reported in ABC’s
A. P558,339
B. P563,298
C. P573,215
D. P578,173
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