On 31 December 2017, PC sold used equipment with carrying amount of P2,000,000 in exchange for a non-interest bearing note of P5,000,000 requiring ten annual payments of P500,000. The first payment was mad on 31 December 2018. The market interest for similar note was 12%. (use 2 decimal places for PV factors) What is the carrying amount of the note receivable on 31 December 2017? What is the gain on sale of equipment to be recognized in 2017?

On 31 December 2017, PC sold used equipment with carrying amount of P2,000,000 in exchange for a non-interest bearing note of P5,000,000 requiring ten annual payments of P500,000. The first payment was mad on 31 December 2018. The market interest for similar note was 12%. (use 2 decimal places for PV factors) What is the carrying amount of the note receivable on 31 December 2017? What is the gain on sale of equipment to be recognized in 2017?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 11EB: Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase,...

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