On January 1, 2013, BNI Co. sold machinery costing P3,000,000 with accumulated depreciation of P1,200,000 in exchange for a 3-year, P900,000 noninterest-bearing note receivable due as follows: Date Amount of installment December 31, 2013 400,000 December 31, 2014 350,000 December 31, 2015 150,000 Total 900,000 The prevailing rate of interest for this type of note is 10%. How much is the carrying amount of the receivable on December 31, 2013?

On January 1, 2013, BNI Co. sold machinery costing P3,000,000 with accumulated depreciation of P1,200,000 in exchange for a 3-year, P900,000 noninterest-bearing note receivable due as follows: Date Amount of installment December 31, 2013 400,000 December 31, 2014 350,000 December 31, 2015 150,000 Total 900,000 The prevailing rate of interest for this type of note is 10%. How much is the carrying amount of the receivable on December 31, 2013?

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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