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Anama Company is a dealer of equipment. On January 1, 2021, the entity sold equipment in exchange for a noninterest-bearing note requiring 5 annual payments of P850,000. The first payment was made on December 31, 2021.                                                         The market rate for a similar note was 9%.    The entity used 2 decimal places for the PV factor.                                                                                                        How much is the carrying amount of the note receivable on December 31, 2021?

Anama Company is a dealer of equipment. On January 1, 2021, the entity sold equipment in exchange for a noninterest-bearing note requiring 5 annual payments of P850,000. The first payment was made on December 31, 2021.                                                         The market rate for a similar note was 9%.    The entity used 2 decimal places for the PV factor.                                                                                                        How much is the carrying amount of the note receivable on December 31, 2021?

Intermediate Accounting: Reporting And Analysis
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
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 10MC: On January 1, 2019, Park Company accepted a 36,000, non-interest-bearing, 3-year note from a major...
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Anama Company is a dealer of equipment.

On January 1, 2021, the entity sold equipment in exchange for a noninterest-bearing note requiring 5 annual payments of P850,000.

The first payment was made on December 31, 2021.                                                        

The market rate for a similar note was 9%.   

The entity used 2 decimal places for the PV factor.                                             

                                                         

How much is the carrying amount of the note receivable on December 31, 2021?  

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