On September 1, 2017, Fantastic Company sold a piece of land in exchange for a 5-year note with face value of P4,000,000 and bearing interest at 12%. The note is due on August 31, 2022 and interest is payable every August 31 starting on August 31, 2018. What is the amount of interest income to be reported on the December 31, 2019 income statement? (The PV of 1 at 12% for 5 years is 0.56) P268,800 P480,000 P160,000 P640,000
On September 1, 2017, Fantastic Company sold a piece of land in exchange for a 5-year note with face value of P4,000,000 and bearing interest at 12%. The note is due on August 31, 2022 and interest is payable every August 31 starting on August 31, 2018. What is the amount of interest income to be reported on the December 31, 2019 income statement? (The PV of 1 at 12% for 5 years is 0.56) P268,800 P480,000 P160,000 P640,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 3MC: On July 1, 2019, Aldrich Company purchased as an available-for-sale security 200,000 face value, 9%...
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On September 1, 2017, Fantastic Company sold a piece of land in exchange for a 5-year note with face value of P4,000,000 and bearing interest at 12%. The note is due on August 31, 2022 and interest is payable every August 31 starting on August 31, 2018. What is the amount of interest income to be reported on the December 31, 2019 income statement? (The PV of 1 at 12% for 5 years is 0.56)
- P268,800 P480,000
- P160,000 P640,000
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