Question: The interest income to be recognized in 2022 is? Please include solutions. Thank you! On January 1, 2021, Divino Company sold equipment with carrying amount of P800,000 toJocelle Company. As payment, Jocelle gave Divino Company a P1,200,000 note. The note bearsan interest rate of 5% and is to be repaid in three annual installments of P400,000 plus intereston outstanding balance. The first payment was received on December 31, 2021. The marketprice of the equipment is not readily determinable. The prevailing rate of interest for notes ofthis type is 10%.33. The interest income to be recognized in 2022 is:

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The interest income to be recognized in 2022 is?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question: The interest income to be recognized in 2022 is?

Please include solutions. Thank you!

On January 1, 2021, Divino Company sold equipment with carrying amount of P800,000 to
Jocelle Company. As payment, Jocelle gave Divino Company a P1,200,000 note. The note bears
an interest rate of 5% and is to be repaid in three annual installments of P400,000 plus interest
on outstanding balance. The first payment was received on December 31, 2021. The market
price of the equipment is not readily determinable. The prevailing rate of interest for notes of
this type is 10%.
33. The interest income to be recognized in 2022 is:

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