Ann Company sold one of its factories on January 1, 2020 for ₱7,000,000. The entity received a cash down payment of ₱1,000,000 and a 4-year, 12% note receivable for the balance. The note is payable in equal annual payments of principal and interest of ₱1,975,400 on December 31 of each year until 2023. What is the carrying amount of the note receivable in December 31, 2022?
Ann Company sold one of its factories on January 1, 2020 for ₱7,000,000. The entity received a cash down payment of ₱1,000,000 and a 4-year, 12% note receivable for the balance. The note is payable in equal annual payments of principal and interest of ₱1,975,400 on December 31 of each year until 2023. What is the carrying amount of the note receivable in December 31, 2022?
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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Ann Company sold one of its factories on January 1, 2020 for ₱7,000,000. The entity received a cash down payment of ₱1,000,000 and a 4-year, 12% note receivable for the balance. The note is payable in equal annual payments of principal and interest of ₱1,975,400 on December 31 of each year until 2023. What is the carrying amount of the note receivable in December 31, 2022?
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