What is the carrying amount of the note as of December 31, 2022? On January 1, 2022. TGIG sold equipment with a historical cost of P10,000,000 and accumulated depreciation of P5,500,000 in exchange for a P6,000,000 non-interest-bearing note due in annual installments as follows: December 31. 2022 - 3, 000, 000 December 31, 2023 - 2, 000, 000 December 31 2024 - 1, 000, 000 There was no exchange price for the equipment. The prevailing rate of interest for a note of this type on January 1, 2022, was 10%. (Round off present value factors to four decimal places.
What is the carrying amount of the note as of December 31, 2022? On January 1, 2022. TGIG sold equipment with a historical cost of P10,000,000 and accumulated depreciation of P5,500,000 in exchange for a P6,000,000 non-interest-bearing note due in annual installments as follows: December 31. 2022 - 3, 000, 000 December 31, 2023 - 2, 000, 000 December 31 2024 - 1, 000, 000 There was no exchange price for the equipment. The prevailing rate of interest for a note of this type on January 1, 2022, was 10%. (Round off present value factors to four decimal places.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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What is the carrying amount of the note as of December 31, 2022?
On January 1, 2022. TGIG sold equipment with a historical cost of P10,000,000 and
depreciation of P5,500,000 in exchange for a P6,000,000 non-interest-bearing note due in annual
installments as follows:
December 31. 2022 - 3, 000, 000
December 31, 2023 - 2, 000, 000
December 31 2024 - 1, 000, 000
There was no exchange price for the equipment. The prevailing rate of interest for a note of this type on
January 1, 2022, was 10%. (Round off present value factors to four decimal places.
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