Answer this correctly. Thank you :) 13. The Santol company sold some machinery to the Malabon Company on January 1, 2005. Thecash selling price would have been P3,791,000. Malabon entered into an installment salescontract which required annual payments of P1,000,000 including interest at 10% over fiveyears. The first payment was due on December 31, 2005..What amount of interest income should be included in Santol's 2007 income statement (thethird year of the contract)?a. P241,800b. P248,710C.P379,100d.P500,000

In this question, we have to calculate the interest income of the third year of the contract.

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Business

Accounting

ly. Thank you :)

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

Chapter20: Accounting For Leases

Section: Chapter Questions

Problem 10MC: On August 1, 2019, Kern Company leased a machine to Day Company for a 6-year period requiring...

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