For the next two items: A company sold a factory on January 1, 2016 for P7,000,000. The entity received a cash down payment of P1,000,000 and a 4-year, 12%note for the balance. The note is payable in equal annual payments of principal and interest of P1,975,400 payable on December 31 of each year until 2019. 20. What is the interest income for 2017? a. 840,000 b. 720,000 c. 569,352 d. 975,400 21. What is the carrying amount of the note receivable on December 31, 2017? a. 4,500,000 b. 4,744,600 c. 3,338,552 d. 4,025,600
For the next two items: A company sold a factory on January 1, 2016 for P7,000,000. The entity received a cash down payment of P1,000,000 and a 4-year, 12%note for the balance. The note is payable in equal annual payments of principal and interest of P1,975,400 payable on December 31 of each year until 2019. 20. What is the interest income for 2017? a. 840,000 b. 720,000 c. 569,352 d. 975,400 21. What is the carrying amount of the note receivable on December 31, 2017? a. 4,500,000 b. 4,744,600 c. 3,338,552 d. 4,025,600
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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