House Publishers offered a contest in which the winner would receive ₱1,000,000, payable over 20 years. On December 31, 2017, House announced the winner of the contest and signed a note payable to the winner for ₱1,000,000, payable in ₱50,000 installments every January 2. Also on December 31, 2017, House purchased an annuity for ₱418,250 to provide the ₱950,000 prize monies remaining after the first ₱50,000 installment, which was paid on January 2, 2018. In its 2017
House Publishers offered a contest in which the winner would receive ₱1,000,000, payable over 20 years. On December 31, 2017, House announced the winner of the contest and signed a note payable to the winner for ₱1,000,000, payable in ₱50,000 installments every January 2. Also on December 31, 2017, House purchased an annuity for ₱418,250 to provide the ₱950,000 prize monies remaining after the first ₱50,000 installment, which was paid on January 2, 2018. In its 2017
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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House Publishers offered a contest in which the winner would receive ₱1,000,000, payable over 20 years. On December 31, 2017, House announced the winner of the contest and signed a note payable to the winner for ₱1,000,000, payable in ₱50,000 installments every January 2. Also on December 31, 2017, House purchased an annuity for ₱418,250 to provide the ₱950,000 prize monies remaining after the first ₱50,000 installment, which was paid on January 2, 2018.
In its 2017 income statement, what should House report as contest prize expense?
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