Carson Company borrowed P3,600,000 from a bank evidenced by a non-interest-bearing note due in five years. At the 12% imputed interest rate for this type of loan, the present value of the note is P2,550,000 on January 1, 2020. What interest expense should be reported in 2020? Group of answer choices P306,000 P350,000 P432,000 P0
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. Carson Company borrowed P3,600,000 from a bank evidenced by a non-interest-bearing note due in five years. At the 12% imputed interest rate for this type of loan, the present value of the note is P2,550,000 on January 1, 2020.
What interest expense should be reported in 2020?
Group of answer choices
P306,000
P350,000
P432,000
P0
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