, 2018, ABC Company borrowed P1,000,000 on a 10% five-year note payable. On December 31, 2018, the fair value of the note is determined to be P975,000 based on market and interest factors. The entity has elected the fair value option for reporting the financial liability. Compute the following and show your solution: c. gain or loss to be recognized in 2018 as a result of the fair value option d. discount on note payable presented on December 31,
, 2018, ABC Company borrowed P1,000,000 on a 10% five-year note payable. On December 31, 2018, the fair value of the note is determined to be P975,000 based on market and interest factors. The entity has elected the fair value option for reporting the financial liability. Compute the following and show your solution: c. gain or loss to be recognized in 2018 as a result of the fair value option d. discount on note payable presented on December 31,
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
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 14RE: On January 1, 2019, Boater Company issues a 20,000 non-interest-bearing, 5-year note for equipment....
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On July 1, 2018, ABC Company borrowed P1,000,000 on a 10% five-year note payable. On
December 31, 2018, the fair value of the note is determined to be P975,000 based on market
and interest factors. The entity has elected the fair value option for reporting the financial
liability.
Compute the following and show your solution:
c. gain or loss to be recognized in 2018 as a result of the fair value option
d. discount on note payable presented on December 31, 2018
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