What is the amount of income to be reported upon receipt of the note? At the end of the taxable year?
What is the amount of income to be reported upon receipt of the note? At the end of the taxable year?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Robert received a note with a face value of P 40,000 as a fee for the services she rendered to the client. The note is a non – interest bearing and is payable within a year. The prevailing market rate of the note is 10%. The present value factor of 10% annuity of P 1 is .909.
What is the amount of income to be reported upon receipt of the note? At the end of the taxable year?
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