On September 1, 2017, Fantastic Company sold a piece of land in exchange for a 5-year note with face value of P4,000,000 and bearing interest at 12%. The note is due on August 31, 2022 and interest is payable every August 31 starting on August 31, 2018. What is the amount of interest income to be reported on the December 31, 2019 income statement? (The PV of 1 at 12% for 5 years is 0.56) P268,800 P480,000 P160,000 P640,000

On September 1, 2017, Fantastic Company sold a piece of land in exchange for a 5-year note with face value of P4,000,000 and bearing interest at 12%. The note is due on August 31, 2022 and interest is payable every August 31 starting on August 31, 2018. What is the amount of interest income to be reported on the December 31, 2019 income statement? (The PV of 1 at 12% for 5 years is 0.56) P268,800 P480,000 P160,000 P640,000

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter4: Gross Income: Concepts And Inclusions

Section: Chapter Questions

Problem 21CE

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