On April 1, 2022 Blo Inc. receives a 6-year $60,000 note in exchange for a parcel of land.  The cost of the land was $35,000.  Neither the market rate nor the fair value of the land can be determined.  Notes of similar risk carry a 12% imputed rate of interest.  The financial year ends December 31. a.    The present value of the note is $Answer b.     There was a (gain or loss) Answer on the sale of the land of $Answer

On October 1, 2020, ABC Manufacturing sold a tract of land that originally cost P400,000.  ABC received a P600,000, 6% note as payment for the land. The principal amount of the note is payable on September 30, 2023.  Interest is payable every anniversary dates - September 30, 2021, September 30, 2022 and September 30, 2023.  On October 1, 2020, the prevailing rate of interest for a similar obligation is 10%.  On this date, there is no available cash price for the land. PV of a single payment at 6%- 0.8396; PV of a single payment at 10%- 0.7513; PV of ordinary annuity at 6%- 2.6730; PV of ordinary annuity at 10%- 2.4869. ABC's accounting period ends on December 31.  How much is the amortized cost/carrying value of the note receivable reported in ABC’s statement of financial position at December 31, 2021? A. P558,339 B. P563,298 C. P573,215 D. P578,173

On January 1, 2021, Anna Company sold a piece of equipment to Banana Company with a cost of P3,500,000 and accumulated depreciation of P600,000 in exchange for an annual 10% interest-bearing note, P3,000,000. Banana is required to make four equal annual payments of principal plus interest. What is the interest income for the year 2022?

am. 09.

On January 1, 2024, Whispering Winds Company sold property to Oriole Company which originally cost Whispering Winds $2640000. There was no established exchange price for this property. Oriole gave Whispering Winds a $4050000 zero - interest - bearing note payable in three equal annual installments of $1350000 with the first payment due December 31, 2024. The note has no ready market. The prevailing rate of interest for a note of this type is 10% . The present value of a $4050000 note payable in three equal annual installments of $1350000 at a 10% rate of interest is $3357250. What is the amount of interest income that should be recognized by Whispering Winds in 2024 if the effective - interest method is used? Select answer from the options below a. $405000 b. $135000 c. $0 d. $335725

Please answer step by step wiyh explanation.

On January 1, 2022, Lorry Manufacturing Company purchased equipment from Wales Inc. There was no established market price for the equipment which has an 8 year life and no salvage value. Lorry gave Wales a P105,000 zero-interest-bearing note payable in 3 equal annual installments of P35,000, with the first payment due December 31, 2022. The prevailing rate of interest for a note of this type is 8%. The present value of the note at 8% was P90,199.  Assuming that Lorry uses the straight-line method of depreciation, what amounts will be reported in the company’s 2022 income statement for depreciation expense of the equipment?     P8,750 P11,275 P13,125 P30,066

7.On April 1, 2021, Leni Company (a calendar-year company) sold a tract of land that originally cost P400,000.  Leni received a P600,000 note as payment for the land.   The note is payable in three annual installments of P200,000 beginning March 31, 2022 plus interest at the rate of 4% based on the outstanding balance.  At April 1, 2021, the prevailing rate of interest for a similar obligation is 10%.  The fair value of the note is derived by discounting all future collections using the prevailing interest rate, thus, amounting to P538,424.How much is the interest revenue for the year ended December 31, 2021?