On May 1,2020, ABC Corporation issued a 5-year, 10%, P 1,000,000 note in exchange of a land with no established cash price . The note is payable in series of five equal annual installments every April 30 and pays annual interest based on the outstanding balance starting on April 30,2021.The prevailing market rate of interest for a note of this type is 9%. As of December 31,2021, how much must be presented as part of current liabilities in the Statement of Financial Position of ABC Corporation? (For present value factors, do not round off) P 253,333.33 P 202,159.81 P 255,493.15 P 200,000
On May 1,2020, ABC Corporation issued a 5-year, 10%, P 1,000,000 note in exchange of a land with no established cash price . The note is payable in series of five equal annual installments every April 30 and pays annual interest based on the outstanding balance starting on April 30,2021.The prevailing market rate of interest for a note of this type is 9%. As of December 31,2021, how much must be presented as part of current liabilities in the Statement of Financial Position of ABC Corporation? (For present value factors, do not round off) P 253,333.33 P 202,159.81 P 255,493.15 P 200,000
Chapter5: Introduction To Business Expenses
Section: Chapter Questions
Problem 61P
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On May 1,2020, ABC Corporation issued a 5-year, 10%, P 1,000,000 note in exchange of a land with no established cash price . The note is payable in series of five equal annual installments every April 30 and pays annual interest based on the outstanding balance starting on April 30,2021.The prevailing market rate of interest for a note of this type is 9%.
As of December 31,2021, how much must be presented as part of current liabilities in the Statement of Financial Position of ABC Corporation? (For present value factors, do not round off)
As of December 31,2021, how much must be presented as part of current liabilities in the Statement of Financial Position of ABC Corporation? (For present value factors, do not round off)
P 253,333.33
P 202,159.81
P 255,493.15
P 200,000
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