On July 1, 2021, ABC Co. issued a 9% interest bearing note with a face amount of P 10,000,000 for the purchase of an equipment. The note is payable in five equal annual installments along with the interests starting on June 30,2022. Interest is payable annually base on the remaining balance. There is no established cash price for the equipment. The prevailing market rate of interest for a note of this type is 9%. How much is the carrying value of the notes, including any accrued interest as of December 31,2022?
On July 1, 2021, ABC Co. issued a 9% interest bearing note with a face amount of P 10,000,000 for the purchase of an equipment. The note is payable in five equal annual installments along with the interests starting on June 30,2022. Interest is payable annually base on the remaining balance. There is no established cash price for the equipment. The prevailing market rate of interest for a note of this type is 9%. How much is the carrying value of the notes, including any accrued interest as of December 31,2022?
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
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 10MC: On January 1, 2019, Park Company accepted a 36,000, non-interest-bearing, 3-year note from a major...
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On July 1, 2021, ABC Co. issued a 9% interest bearing note with a face amount of P 10,000,000 for the purchase of an equipment. The note is payable in five equal annual installments along with the interests starting on June 30,2022. Interest is payable annually base on the remaining balance. There is no established cash price for the equipment. The prevailing market rate of interest for a note of this type is 9%.
How much is the carrying value of the notes, including any accrued interest as of December 31,2022?
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