On January 2, 2020, GRAPES Company sold equipment with a carrying amount of ₱480,000 in exchange for a ₱600,000 non-interest bearing note due Jan 2, 2023. There was no established exchange price for the equipment. The prevailing rate of interest for a note of this type at January 2, 2020 was 10%. The present value of 1 at 10% for three periods is 0.75. How much should GRAPES report as gain(loss) on sale of equipment in its 2020 income statement? (If loss, put a negative sign before the numerical answer)

On January 2, 2020, GRAPES Company sold equipment with a carrying amount of ₱480,000 in exchange for a ₱600,000 non-interest bearing note due Jan 2, 2023. There was no established exchange price for the equipment. The prevailing rate of interest for a note of this type at January 2, 2020 was 10%. The present value of 1 at 10% for three periods is 0.75. How much should GRAPES report as gain(loss) on sale of equipment in its 2020 income statement? (If loss, put a negative sign before the numerical answer)

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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