On January 12019, Aquarius Co. sold a machine with a cost of P500,000 for P800,000The buyer paid a down of P20( and signed a noninterest bearing note for P600,000 payable in equal annual installment of P200,000 every December 31. The prevailing interest rate for a note of this type is 10%The present value of an ordinary annuity of for three periods at 10% is 2.4869. How much is the gain on sale of the machine?
On January 12019, Aquarius Co. sold a machine with a cost of P500,000 for P800,000The buyer paid a down of P20( and signed a noninterest bearing note for P600,000 payable in equal annual installment of P200,000 every December 31. The prevailing interest rate for a note of this type is 10%The present value of an ordinary annuity of for three periods at 10% is 2.4869. How much is the gain on sale of the machine?
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
Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments
Section: Chapter Questions
Problem 3MC: Electro Corporation bought a new machine and agreed to pay for it in equal annual installments of...
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On January 12019, Aquarius Co. sold a machine with a cost of P500,000 for P800,000The buyer paid a down of P20( and signed a noninterest bearing note for P600,000 payable in equal annual installment of P200,000 every December 31. The prevailing interest rate for a note of this type is 10%The present value of an ordinary annuity of for three periods at 10% is 2.4869. How much is the gain on sale of the machine?
Transcribed Image Text:On January 1, 2019, Aquarius Co. sold a machine with a cost of P500,000
for P800,000. The buyer paid a down of P200,000 and signed a
noninterest bearing note for P600,000 payable in equal annual installmen
of P200,000 every December 31. The prevailing interest rate for a note of
this type is 10%. The present value of an ordinary annuity of 1 for three
periods at 10% is 2.4869. How much is the gain on sale of the machine?
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