ABC Company sold an equipment with a carrying amount of P 750,000 on April 1,2020. ABC received a promissory note which bears an interest of 12% payable annually with a face value of P 1,000,000. The principal is payable after 4 years from April 1,2020. The prevailing market rate of interest is 10%. (For present value factors, do not round off) How much is the interest income for year 2021 and carrying value of the notes as of December 31.2021? * a O P 105,315.21 and P 1,038,467.32 O P 78,730.28 and P 1,022,314.05 O P 103,846.73 and P 1,038,467.32 O P 106,339.73 and P 1,022,314.05

ABC Company sold an equipment with a carrying amount of P 750,000 on April 1,2020. ABC received a promissory note which bears an interest of 12% payable annually with a face value of P 1,000,000. The principal is payable after 4 years from April 1,2020. The prevailing market rate of interest is 10%. (For present value factors, do not round off) How much is the interest income for year 2021 and carrying value of the notes as of December 31.2021? * a O P 105,315.21 and P 1,038,467.32 O P 78,730.28 and P 1,022,314.05 O P 103,846.73 and P 1,038,467.32 O P 106,339.73 and P 1,022,314.05

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter20: Accounting For Leases

Section: Chapter Questions

Problem 10MC: On August 1, 2019, Kern Company leased a machine to Day Company for a 6-year period requiring...

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