18.On January 1, 2021, REEDY SLENDER Co. purchased fixtures at an installment price of ₱520,000. REEDY paid ₱40,000 cash down payment and issued a three-year noninterest bearing note of ₱480,000 payable in three equal annual installments starting December 31, 2021 for the balance. The prevailing rate for the note as of January 1, 2021 is 12%. How much is the initial cost of the fixtures? 360,000 424,293 480,000 520,000

18.On January 1, 2021, REEDY SLENDER Co. purchased fixtures at an installment price of ₱520,000. REEDY paid ₱40,000 cash down payment and issued a three-year noninterest bearing note of ₱480,000 payable in three equal annual installments starting December 31, 2021 for the balance. The prevailing rate for the note as of January 1, 2021 is 12%. How much is the initial cost of the fixtures? 360,000 424,293 480,000 520,000

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 10MC: On January 1, 2019, Park Company accepted a 36,000, non-interest-bearing, 3-year note from a major...

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