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Persever Company is a dealer in equipment. On December 21, 2021, the enitity sold an equipment in exchange for a noninterest bearing note requiring five annual payments of P500,000. The first payment was made on December 31, 2022.  The market interest rate for similar notes was 8%. PV of 1 at 8% for 5 periods                                                     0.68 PV of an ordinary annuity of 1 at 8% for periods                     3.99   What amount of interests income should be reported for 2022?

Persever Company is a dealer in equipment. On December 21, 2021, the enitity sold an equipment in exchange for a noninterest bearing note requiring five annual payments of P500,000. The first payment was made on December 31, 2022.  The market interest rate for similar notes was 8%. PV of 1 at 8% for 5 periods                                                     0.68 PV of an ordinary annuity of 1 at 8% for periods                     3.99   What amount of interests income should be reported for 2022?

Intermediate Accounting: Reporting And Analysis
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 28E: On January 1, 2019, Northfield Corporation becomes delinquent on a 100,000, 14% note to First...
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Persever Company is a dealer in equipment. On December 21, 2021, the enitity sold an equipment in exchange for a noninterest bearing note requiring five annual payments of P500,000. The first payment was made on December 31, 2022. 

The market interest rate for similar notes was 8%.

PV of 1 at 8% for 5 periods                                                     0.68

PV of an ordinary annuity of 1 at 8% for periods                     3.99

 

What amount of interests income should be reported for 2022?

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