On January 1, 2023, Grizzlies Corporation sold a piece of equipment that was acquired ten years ago for P350,000. At the time of sale, the equipment had an accumulated depreciation of P240,000. Grizzlies received a non-interest-bearing note for P300,000 in exchange for the equipment. The note is due on December 31, 2024. There is no readily available market value for the equipment, but the current market rate of interest for comparable notes is 12%. The present value of P1 at 12% for two periods is 0.7972. Question: 26. How much is the gain on the sale of equipment? A. P129,160 B. P90,000 C. P50,000 D. P0 27. How much is the interest revenue in 2023 and 2024, respectively? A. P36,000 and P24,840 B. P30,420 and P30,420 C. P28,699 and P32,141 D. P60,840 and P0
On January 1, 2023, Grizzlies Corporation sold a piece of equipment that was acquired ten years ago for P350,000. At the time of sale, the equipment had an accumulated
Question:
26. How much is the gain on the sale of equipment?
A. P129,160
B. P90,000
C. P50,000
D. P0
27. How much is the interest revenue in 2023 and 2024, respectively?
A. P36,000 and P24,840
B. P30,420 and P30,420
C. P28,699 and P32,141
D. P60,840 and P0
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 3 images
