On January 1, 2021, Gee Company sold a machine with a cost of P500,000 and accumulated depreciation of P350,000 to Faye Company. In lieu of cash payment, Faye Company gave a 4-year, P100,000, 10% note. The note requires interest to be paid annually on December 31. The prevailing rate of interest for a note of this type is 16%. Required: Compute the following: (Round off PV factors to 4 decimal places before multiplying.) 1. Gain or loss on sale of machinery (place parenthesis if loss)

On January 1, 2021, Gee Company sold a machine with a cost of P500,000 and accumulated depreciation of P350,000 to Faye Company. In lieu of cash payment, Faye Company gave a 4-year, P100,000, 10% note. The note requires interest to be paid annually on December 31. The prevailing rate of interest for a note of this type is 16%. Required: Compute the following: (Round off PV factors to 4 decimal places before multiplying.) 1. Gain or loss on sale of machinery (place parenthesis if loss)

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 1PA: On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10%...

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