Tati, a company engaged in selling factory machineries, uses the installment method. On December 31 2021, Tati sold a machinery to Cynthia costing 6 million. Tati received the following in consideration for the sale: a. Cash downpayment of 1.5 million b. 12% note of 4 million which is payable in four equal annual installment every December 31 of each year starting December 31, 2022 c. Noninterest bearing note of 2 million which is due on October 31, 2022. The prevailing rate for this note is 12%. On June 1 2022, Tati sold an equipment to Sylvia which costs 4.5 million. Tati received a 12% note for 6 million which is payable in 4 equal installment every June 1 starting June 1, 2022. For the year 2022, operating expenses amounted to 132,000. Determine the net income for the year ending December 31 2022.
Tati, a company engaged in selling factory machineries, uses the installment method. On December 31 2021, Tati sold a machinery to Cynthia costing 6 million. Tati received the following in consideration for the sale:
a. Cash downpayment of 1.5 million
b. 12% note of 4 million which is payable in four equal annual installment every December 31 of each year starting December 31, 2022
c. Noninterest bearing note of 2 million which is due on October 31, 2022. The prevailing rate for this note is 12%.
On June 1 2022, Tati sold an equipment to Sylvia which costs 4.5 million. Tati received a 12% note for 6 million which is payable in 4 equal installment every June 1 starting June 1, 2022.
For the year 2022, operating expenses amounted to 132,000.
Determine the net income for the year ending December 31 2022.
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