On January 1, 2020, MELON Incorporated sold its aggregate equipment. The buyer issued a promissory note with a face amount of P10,000,000 and stated interest rate of 6%. The note is payable in annual installments of P2,000,000 plus accrued interest on the outstanding balance. The first installment is due on December 31, 2020. There is no established cash price for this type of aggregate equipment and the note has no ready market. The prevailing interest for a note of this type is 12%. The aggregate equipment has a cost of P12,000,000 and an accumulated depreciation of P2,600,000 as of January 1, 2020. What will be the carrying amount of the Notes Receivable as of December 31, 2022? (Use four-decimal places and round off the final answer to the nearest peso.)
16. On January 1, 2020, MELON
Incorporated sold its aggregate equipment. The buyer issued a promissory note with a face amount of P10,000,000 and stated interest rate of 6%. The note is payable in annual installments of P2,000,000 plus accrued interest on the outstanding balance. The first installment is due on December 31, 2020. There is no established cash price for this type of aggregate equipment and the note has no ready market. The prevailing interest for a note of this type is 12%.
The aggregate equipment has a cost of P12,000,000 and an
What will be the carrying amount of the Notes Receivable as of December 31, 2022? (Use four-decimal places and round off the final answer to the nearest peso.)
Step by step
Solved in 2 steps
