10. On January 1, 2020, ABC Co. sold a transportation equipment with a historical cost of P1,000,000 and accumulated depreciation of P300,000 in exchange for cash of P100,000 and a noninterest-bearing note receivable of P800,000 due on January 1, 2023. The prevailing rate of interest for this type of note is 12%. How much is the carrying amount of the receivable on December 31, 2021? a. 800,000 b. 569,424 c. 714,286 d. 637,755
10. On January 1, 2020, ABC Co. sold a transportation equipment with a historical cost of P1,000,000 and
a. 800,000
b. 569,424
c. 714,286
d. 637,755
11. Present value is
a. the value now of a future amount.
b. the amount that must be invested now to produce a known future value.
c. always smaller than the future value.
d. all of these.
12. A higher interest rate results to
a. increased amount of present value.
b. decreased amount of present value.
c. same amount of present value.
d. Answer cannot be determined due to insufficient data
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