NOREEN INC, a truck dealer, sells a truck on January 1, 2019, to MENDOZA INC for P3,000,000. NOREEN agrees to repurchase the truck on December 31, 2020 for P3,630,000. 1. Assuming a 10% is imputed in the agreement, how much is the liability of NOREEN on January 1,2019? A. 1,500,000 B. 1,815,000 C. 3,000,000 D. 3,630,000 Using the information above, what is the interest expense for 2019? 2. A. None B. 300,000 D. 630,000 How much should NOREEN INC record interest and retirement of its liability to MENDOZA INC on December 31, 2020? 3. C. 330,000; 3,630,000 D. 630,000; 3,630,000 A. None B. 300,000; 3,600,000
NOREEN INC, a truck dealer, sells a truck on January 1, 2019, to MENDOZA INC for P3,000,000. NOREEN agrees to repurchase the truck on December 31, 2020 for P3,630,000. 1. Assuming a 10% is imputed in the agreement, how much is the liability of NOREEN on January 1,2019? A. 1,500,000 B. 1,815,000 C. 3,000,000 D. 3,630,000 Using the information above, what is the interest expense for 2019? 2. A. None B. 300,000 D. 630,000 How much should NOREEN INC record interest and retirement of its liability to MENDOZA INC on December 31, 2020? 3. C. 330,000; 3,630,000 D. 630,000; 3,630,000 A. None B. 300,000; 3,600,000
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 106.3C
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