On January 1, 2020, Akin Company sold equipment with a carrying amount of P4,800,000 in exchange for a P6,000,000 noninterest-bearing note due January 1, 2023. there was no established exchange price for the equipment. The prevailing rate of interest for a similar note was 10%. the present value of 1 at 10% for three periods is 0.75. What amount should be reported as interest income for 2020? A.600,000 B.500,000 C.450,000 D.400,000 O O O

On January 1, 2020, Akin Company sold equipment with a carrying amount of P4,800,000 in exchange for a P6,000,000 noninterest-bearing note due January 1, 2023. there was no established exchange price for the equipment. The prevailing rate of interest for a similar note was 10%. the present value of 1 at 10% for three periods is 0.75. What amount should be reported as interest income for 2020? A.600,000 B.500,000 C.450,000 D.400,000 O O O

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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