VKS Company entered into the following transactions in connection with its business operations as dealer of auto supplies and related services: i. Sold second hand spare tires to VST Liner in exchange for promissory note with face value of P120,000, payable after 2 years. The note bear interest of 6%, payable annually, when the prevailing rate of interest at the time of sale was 12%. ii. Rendered significant volume of auto repair services to Dispair Trading in exchange with another promissory note with face value of P210,000. The notes issued by VST is non-interest bearing, payable in 3 years and the services rendered has cash equivalent price of P175,000. How much revenue should be recognized by VKS Company on the year of sale? (Round of present value factors to 4 decimal places, and final answer to nearest peso.)
VKS Company entered into the following transactions in connection with its business operations as dealer of auto supplies and related services:
i. Sold second hand spare tires to VST Liner in exchange for promissory note with face value of P120,000, payable after 2 years. The note bear interest of 6%, payable annually, when the prevailing rate of interest at the time of sale was 12%.
ii. Rendered significant volume of auto repair services to Dispair Trading in exchange with another promissory note with face value of P210,000. The notes issued by VST is non-interest bearing, payable in 3 years and the services rendered has cash equivalent price of P175,000.
How much revenue should be recognized by VKS Company on the year of sale? (Round of present value factors to 4 decimal places, and final answer to nearest peso.)
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