On July 1, 2020, ATLAS grants a 5-year P5,000,000 non-interest bearing advance to its president The market rate of interest for similar obligations is 12%. How much is the interest revenue recognized by ATLAS for the year 2020? A. P600,000 B. P340,440 C. P300,000 D. P170,220
On July 1, 2020, ATLAS grants a 5-year P5,000,000 non-interest bearing advance to its president The market rate of interest for similar obligations is 12%. How much is the interest revenue recognized by ATLAS for the year 2020? A. P600,000 B. P340,440 C. P300,000 D. P170,220
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 July 1, 2020, ATLAS grants a 5-year P5,000,000 non-interest bearing advance to its president The market rate of interest for similar obligations is 12%.
How much is the interest revenue recognized by ATLAS for the year 2020?
A. P600,000
B. P340,440
C. P300,000
D. P170,220
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