On January 1, 2023, ABC Company sold a office equipment with a cost of P5,400,000 and accumulated depreciation of P2,980,000. In consideration for the sale, ABC Company received cash of P220,000 and a noninterest-bearing note receivable of P3,500,000 due on December 31, 2026. The prevailing rate of interest for this type of note is 12%. On January 1, 2023, ABC Company sold an old machinery with a cost of P3,000,000 and accumulated depreciation of P2,000,000. In consideration for the sale, ABC Company received cash of P250,000 and a noninterest-bearing note receivable of P1,850,000 due in 5 equal annual installments starting December 31, 2023. The prevailing rate of interest of this type of note is 10%.

On December 31, 2019, Univ Corporation sold for 50,000 an old machine having an original cost of 90,000 and a book value of 40,000. The terms of the sale were as follows: 10,000 down payment 20,000 payable on December 31 each of the next two years The agreement of sale made no mention of interest; however, 9% would be a fair rate for this type of transaction. What should be the amount of the notes receivable net of the unamortized discount on December 31, 2020 rounded to the nearest dollar? (Round your present value factor to 5 digits).

On January 1, 2025, Shetland Company loans $252,510 to Durham Corporation in exchange for a $300,000 zero-interest-bearing note payable in 2 years. The market rate of interest for a transaction of this nature for Durham is 9%. The present value of 1, 2 years out at 9% is 0.8417. Shetland Company has a calendar year-end and it uses the effective-interest method. Prepare journal entries on 1/1/25 to recognize the loan for Shetland Company

On February 1, 20x1, TSR Co. sold machinery with historical cost of P3,000,000 and accumulated depreciation of P900,000 in exchange for a 3-year, P2,100,000 noninterest-bearing note receivable due in equal semi-annual payments every August 1 and February 1 starting on August 1, 20x1. The prevailing rate of interest for this type of note is 10%. How much is the interest income in 20x2?