On January 1, 2020, Victoria Company borrowed ₱600,000 8%, noninterest-bearing note due in four years. The present value of the note on January 1, 2020 was ₱441,000. The entity elects the fair value method for reporting financial liabilities. On December 31, 2020, the fair value of the note is ₱489,780. At what amount should the discount on note payable be presented on December 31, 2020?
On January 1, 2020, Victoria Company borrowed ₱600,000 8%, noninterest-bearing note due in four years. The present value of the note on January 1, 2020 was ₱441,000. The entity elects the fair value method for reporting financial liabilities. On December 31, 2020, the fair value of the note is ₱489,780. At what amount should the discount on note payable be presented 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
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 14RE: On January 1, 2019, Boater Company issues a 20,000 non-interest-bearing, 5-year note for equipment....
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On January 1, 2020, Victoria Company borrowed ₱600,000 8%, noninterest-bearing note due in four years. The present value of the note on January 1, 2020 was ₱441,000. The entity elects the fair value method for reporting financial liabilities. On December 31, 2020, the fair value of the note is ₱489,780. At what amount should the discount on note payable be presented on December 31, 2020?
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