book value of P60,000, the term of the sale were as follows: P120,000 down payment  P120,000 payable on December 31 each of the next three years  The agreement of sale made no mention of interest; however, 9% would be a fair rate for this type of  Transaction. What should be the amortized cost of the note receivable on December 31,2022?   P211,093 P110,092 P303,755 P360,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
On December 31,2021, PAUL Corporation sold for P480,000 an old machine having an original cost of P800,000 and a book value of P60,000, the term of the sale were as follows: P120,000 down payment

 P120,000 payable on December 31 each of the next three years

 The agreement of sale made no mention of interest; however, 9% would be a fair rate for this type of
 Transaction. What should be the amortized cost of the note receivable on December 31,2022?
 
P211,093
P110,092
P303,755
P360,000
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education