On January 1, 2021, Jin Company sold equipment at a cost of P400,000. The consideration is a noninterest-bearing note. Related data of the note: The annual collection for three periods is P200,000 every end of the year. The effective rate is 12% What is the present value of the note on January 1, 2021?
On January 1, 2021, Jin Company sold equipment at a cost of P400,000. The consideration is a noninterest-bearing note. Related data of the note: The annual collection for three periods is P200,000 every end of the year. The effective rate is 12% What is the present value of the note on January 1, 2021?
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, 2021, Jin Company sold equipment at a cost of P400,000.
The consideration is a noninterest-bearing note.
Related data of the note:
The annual collection for three periods is P200,000 every end of the year. The effective rate is 12%
What is the present value of the note on January 1, 2021?
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