Railing Co. obtained a 4-year, P600,000, Non-interest bearing note that requires payment in lump sum at maturity date, Railing determined that the effective interest rate on the note is 12%. Which of the following statements is correct? A.Railing Co. will likely measure the note on initial recognition by multiplying the face amount of the note by PV of 1 @12%, n=4. B.Railing co will most likely measure the note on initial recognition by multiplying the face amount of the note by PV of annuity dure of 1 @12%, n=4. C.Railing Co. will most likely measure the face amount of the note on initial recognition by multiplying the face amount of the note by PV of annuity due of 1@12, n=4. D.Any of these as an accounting policy choice.
Railing Co. obtained a 4-year, P600,000, Non-interest bearing note that requires payment in lump sum at maturity date, Railing determined that the effective interest rate on the note is 12%. Which of the following statements is correct?
A.Railing Co. will likely measure the note on initial recognition by multiplying the face amount of the note by PV of 1 @12%, n=4.
B.Railing co will most likely measure the note on initial recognition by multiplying the face amount of the note by PV of
C.Railing Co. will most likely measure the face amount of the note on initial recognition by multiplying the face amount of the note by PV of annuity due of 1@12, n=4.
D.Any of these as an accounting policy choice.
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