On January 1, 200A, ABC Company sells to XYZ, a used transportation equipment, which was acquired at P800,000, 5 years ago. The carrying value of the equipment is P400,000. There is no established selling price for the equipment. Upon executing the sale, ABC received P100,000 down payment and an 11% 3 year promissory note amounting to P450,000, when the interest rate prevailing in the market is 12%. At the end of December 200A, the carrying value of the note receivable is (Round off the resulting present value of the note to the nearest hundreds.)
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On January 1, 200A, ABC Company sells to XYZ, a used transportation equipment, which was acquired at P800,000, 5 years ago. The carrying value of the equipment is P400,000. There is no established selling price for the equipment. Upon executing the sale, ABC received P100,000 down payment and an 11% 3 year promissory note amounting to P450,000, when the interest rate prevailing in the market is 12%.
At the end of December 200A, the carrying value of the note receivable is (Round off the resulting present value of the note to the nearest hundreds.)
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- On January 1, 200A, ABC Company sells to XYZ, a used transportation equipment, which was acquired at P800,000, 5 years ago. The carrying value of the equipment is P400,000. There is no established selling price for the equipment. Upon executing the sale, ABC received P100,000 down payment and an 11% 3 year promissory note amounting to P450,000, when the interest rate prevailing in the market is 10%. At the end of December 200B, the carrying value of the noncurrent note receivable is (Round off the resulting present value of the note to the nearest hundreds.)On January 1, 200A, ABC Company sells to XYZ, a used transportation equipment, which was acquired at P800,000, 5 years ago. The carrying value of the equipment is P400,000. There is no established selling price for the equipment. Upon executing the sale, ABC received P100,000 down payment and an 11% 3 year promissory note amounting to P450,000, when the interest rate prevailing in the market is 12%. At the end of December 200A, how much is the total amount of income that should be shown in ABC’s income statement. Round off the resulting present value of the note to the nearest hundreds.9. On January 1, 200A, ABC Company sells to XYZ, a used transportation equipment, which was acquired at P800,000, 5 years ago. The carrying value of the equipment is P400,000. There is no established selling price for the equipment. Upon executing the sale, ABC received P100,000 down payment and an 11% 3 year promissory note amounting to P450,000, when the interest rate prevailing in the market is 10%. At the end of December 200B, the carrying value of the noncurrent note receivable is (Round off the resulting present value of the note to the nearest hundreds.) 10. On January 1, 200A, ABC Company sells to XYZ, a used transportation equipment, which was acquired at P800,000, 5 years ago. The carrying value of the equipment is P500,000. There is no established selling price for the equipment. Upon executing the sale, ABC received P100,000 down payment and a non-interest bearing promissory note which gives the holder the right to collect 150,000 annually starting December 200A until…
- On January 1, 200A, ABC Company sells to XYZ, a used transportation equipment, which was acquired at P800,000, 5 years ago. The carrying value of the equipment is P500,000. There is no established selling price for the equipment. Upon executing the sale, ABC received P100,000 down payment and a non-interest bearing promissory note which gives the holder the right to collect 150,000 annually starting December 200A until December 200C, when the interest rate prevailing in the market is 11%. At the end of December 200A, the carrying value of the current portion of note receivable is (Round off the resulting present value of the note to the nearest hundreds.)On January 1, 200A, ABC Company sells to XYZ, a used transportation equipment, which was acquired at P800,000, 5 years ago. The carrying value of the equipment is P500,000. There is no established selling price for the equipment. Upon executing the sale, ABC received P100,000 down payment and a non-interest bearing promissory note which gives the holder the right to collect 150,000 annually starting December 200A until December 200C, when the interest rate prevailing in the market is 11%. At the end of December 200A, the carrying value of the noncurrent portion of note receivable is (Round off the resulting present value of the note to the nearest hundreds.)On January 1, 200A, ABC Company sells to XYZ, a used transportation equipment, which was acquired at P800,000, 5 years ago. The carrying value of the equipment is P500,000. There is no established selling price for the equipment. Upon executing the sale, ABC received P100,000 down payment and a non-interest bearing promissory note which gives the holder the right to collect 150,000 annually starting December 200A until December 200C, when the interest rate prevailing in the market is 11%. The initial amount of the note receivable is
- On January 1, 200A, ABC Company sells to XYZ, a used transportation equipment, which was acquired at P800,000, 5 years ago. The carrying value of the equipment is P500,000. There is no established selling price for the equipment. Upon executing the sale, ABC received P100,000 down payment and a 12% promissory note which gives the holder the right to collect 150,000 annually starting December 200A until December 200C, when the interest rate prevailing in the market is 13%. The initial amount of the note receivable is (Round off the resulting present value of the note to the nearest hundreds.)On January 1, 200A, ABC Company sells to XYZ, a used transportation equipment, which was acquired at P800,000, 5 years ago. The carrying value of the equipment is P500,000. There is no established selling price for the equipment. Upon executing the sale, ABC received P100,000 down payment and a 12% promissory note which gives the holder the right to collect 150,000 annually starting December 200A until December 200C, when the interest rate prevailing in the market is 13%. At the end of December 200A, the carrying value of the noncurrent portion of note receivable isOn January 1, 2023, Hornets Company sold land that originally cost P400,000 to the Egi Company. As payment, Egi gave Hornets a P600,000 note. The note bears an interest rate of 8% and is to be repaid in three annual installments of P200,000 plus interest on the outstanding balance. The first payment is due on December 31, 2023. The market price of the land is not reliably determinable. The prevailing interest rate for notes of this type is 8%. Question:31. How much is the interest revenue for the year 2023? A. P67,217B. P57,643C. P51,250D. P48,000
- On January 1, 2023, Hornets Company sold land that originally cost P400,000 to the Egi Company. As payment, Egi gave Hornets a P600,000 note. The note bears an interest rate of 8% and is to be repaid in three annual installments of P200,000 plus interest on the outstanding balance. The first payment is due on December 31, 2023. The market price of the land is not reliably determinable. The prevailing interest rate for notes of this type is 8%. Question:32. Using the assumption of No. 30 (which is 12% interest rate for notes instead of 8%), what is the amortized cost of the note receivable at December 31, 2023? A. P600,000B. P400,000C. P379,355D. P290,003On January 1, 2023, Hornets Company sold land that originally cost P400,000 to the Egi Company. As payment, Egi gave Hornets a P600,000 note. The note bears an interest rate of 8% and is to be repaid in three annual installments of P200,000 plus interest on the outstanding balance. The first payment is due on December 31, 2023. The market price of the land is not reliably determinable. The prevailing interest rate for notes of this type is 8%. Question:28. How much is the gain on the sale of land? A. P400,000B. P200,000C. P103,105D. P66,667On January 1, 2023, Hornets Company sold land that originally cost P400,000 to the Egi Company. As payment, Egi gave Hornets a P600,000 note. The note bears an interest rate of 8% and is to be repaid in three annual installments of P200,000 plus interest on the outstanding balance. The first payment is due on December 31, 2023. The market price of the land is not reliably determinable. The prevailing interest rate for notes of this type is 8%. Question:30. Assume the same facts given in the problem, but change the prevailing interest rate for notes of this type to 12% (instead of 8%). At how much should the note be recorded on January 1, 2023? A. P600,000B. P560,138C. P480,360D. P427,080