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was 9%. The present value factors at 10% and 9% are: (pls see attachment) What is the carrying amount of the note payable on December 31, 2017? *

was 9%. The present value factors at 10% and 9% are: (pls see attachment) What is the carrying amount of the note payable on December 31, 2017? *

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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On January 1, 2017, Liza Corporation received P1,000,000 on a noninterest-bearing note due in three years. The market rate of interest on such date is 10%. The entity irrevocably elected the fair value option in measuring the notes payable. On December 31, 2017, the risk factors indicated that the rate of interest applicable to the borrowing was 9%. The present value factors at 10% and 9% are: (pls see attachment) What is the carrying amount of the note payable on December 31, 2017? PV factor 10%,3 p | .751 PV factor 10%,2 p PV factor 10%,1 p PV factor 9%,3 p .826 PV factor 9%,2 p PV factor 9%,1 p .772 .842 .909 .917 < >
Transcribed Image Text:On January 1, 2017, Liza Corporation received P1,000,000 on a noninterest-bearing note due in three years. The market rate of interest on such date is 10%. The entity irrevocably elected the fair value option in measuring the notes payable. On December 31, 2017, the risk factors indicated that the rate of interest applicable to the borrowing was 9%. The present value factors at 10% and 9% are: (pls see attachment) What is the carrying amount of the note payable on December 31, 2017? PV factor 10%,3 p | .751 PV factor 10%,2 p PV factor 10%,1 p PV factor 9%,3 p .826 PV factor 9%,2 p PV factor 9%,1 p .772 .842 .909 .917 < >
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