On January 1, 2020, the India Inc. issued P3,000,000, 13% promissory note for an equipment purchased. The note is to be paid on December 31, 2020. Interest is payable annually. The effective interest at the time of issuance of this note is 12%. (Use 4-decimal places for the PV factor) How much is the carrying value of the note on December 31, 2020?
On January 1, 2020, the India Inc. issued P3,000,000, 13% promissory note for an equipment purchased. The note is to be paid on December 31, 2020. Interest is payable annually. The effective interest at the time of issuance of this note is 12%. (Use 4-decimal places for the PV factor) How much is the carrying value of the note on December 31, 2020?
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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On January 1, 2020, the India Inc. issued P3,000,000, 13% promissory note for an equipment purchased. The note is to be paid on December 31, 2020. Interest is payable annually. The effective interest at the time of issuance of this note is 12%. (Use 4-decimal places for the PV factor)
How much is the carrying value of the note on December 31, 2020?
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