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
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- 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. $335725On January 1, 2021, Marigold Corp. sold property to Cullumber Company which originally cost Marigold $2760000. There was no established exchange price for this property. Cullumber gave Marigold a $4170000 zero-interest-bearing note payable in three equal annual installments of $1390000 with the first payment due December 31, 2021. The note has no ready market. The prevailing rate of interest for a note of this type is 10%. The present value of a $4170000 note payable in three equal annual installments of $1390000 at a 10% rate of interest is $3456930. What is the amount of interest income that should be recognized by Marigold in 2021, using the effective-interest method? $417000. $0. $139000. $345693.On January 1, 2021, Gobert Company sold property to Beasley Company. There was no established exchange price for the property, and Beasley gave Gobert a $751,000 zero-interest- bearing note payable on January 1, 2025. The prevailing rate of interest for a note of this type is 6%. The property had a book value of $341,000 to Gobert. What should be the balance of the Discount on Notes Payable account on the books of Beasley at December 31, 2021 after adjusting entries are made, assuming that the effective-interest method is used?
- On January 1, 2020, ABC Company sold property to the DEF Company. There was no established exchange price for the property, and DEF gave ABC a P2,000,000 non-interest bearing note payable in 5 equal annual installments of P400,000, with the first payment due December 31, 2020. The prevailing rate of interest for a note of this type is 9%.What should be the balance of the Discount on Notes Payable account on the books of DEF at December 31, 2021 after adjusting entries are made assuming that the effective interest method is used? A. P-0- B. P 444,139.49 C. P 187,482.13 D. P 304,112.05On January 1, 2020, ABC Company sold property to the DEF Company. There was no established exchange price for the property, and DEF gave ABC a P2,000,000 non-interest bearing note payable in 5 equal annual installments of P400,000, with the first payment due December 31, 2020. The prevailing rate of interest for a note of this type is 9%.What should be the balance of the Discount on Notes Payable account on the books of DEF at December 31, 2021 after adjusting entries are made assuming that the effective interest method is used? A. 0 B. 444,139.49 C.187,482.13 D. 304,112.05On January 1, 2021, ABC Company sold property to the DEF Company. There was no established exchange price for the property, and DEF gave ABC a P2,000,000 non-interest bearing note payable in 5 equal annual installments of P400,000, with the first payment due December 31, 2021. The prevailing rate of interest for a note of this type is 9%.What should be the balance of the Discount on Notes Payable account on the books of ABC Company at December 31, 2022 after adjusting entries are made assuming that the effective interest method is used?
- On January 1, 2022, Jantzen Company sold land to Dansko Company. There was no established market price for the land. Dansko gave Jantzen a P2,400,000 Zero-interest-bearing note payable in three equal annual installments of P800,000 with the first payment due December 31, 2022. The note has no ready market. The prevailing rate of interest for a note of this type is 10%. The present value of a P2,400,000 note payable in three equal annual installments of P800,000 at a 10% rate of interest is P1,989,600. The note will be reported on Dansko’s 2022 statement of financial position at a carrying value of P2,400,000 P2,188,560 P2,126,400 P1,388,560On January 1, 2019, Erwan Company sold land to Heaven Company. There was no established market price for the land. heaven gave Erwan a P2,400,000 noninterest bearing note payable in three equal annual installments of P800,000 with the first payment due December 31, 2019. The note has no ready market. The prevailing rate of interest for a note of this type is 10%. The present value of a P2,400,000 note payable in three equal annual installments of P800,000 at a 10% rate of interest is P1,989,600. On January 1, 2019, how much should note payable be credited? A. 2,400,000B. 800,000C. 3,200,000D. P1,989,600On January 1, 2021, ABC Company sold property to the DEF Company. There was no established exchange price for the property, and DEF gave ABC a P2,000,000 non-interest bearing note payable in 5 equal annual installments of P400,000, with the first payment due December 31, 2021. The prevailing rate of interest for a note of this type is 9%.What amount from the carrying value of the notes shall be presented as part of the non-current liabilities as of December 31,2023? P 703,644.47 P 336,672.00 P 366,972.48 P 308,873.39
- On January 1, 2021, ABC Company sold property to the DEF Company. There was no established exchange price for the property, and DEF gave ABC a P2,000,000 non-interest bearing note payable in 5 equal annual installments of P400,000, with the first payment due December 31, 2021. The prevailing rate of interest for a note of this type is 9%. What amount from the carrying value of the notes shall be presented as part of the non-current liabilities as of December 31,2023?On January 1, 2019, Sobiono company sold land to Gliezel company. There were no established market price for the land. Glieezel gave Sobiono a P4,800,000 noninterest bearing note payable in three equal annual installments of P1,600,000 with the first payment due December 31, 2019. The note has no ready market. The prevailing rate of interest for a note of this type is 10%. The present value of a P4,800,000 note payable in three equal annual installments of P1,600,000 at a 10% rate of interest is P3,979,200. What is the carrying amount of the note payable on December 31, 2019?On January 1, 2023, Pelicans Company sold an equipment to Hornets Company which had a carrying value on Pelicans' books of P100,000. Hornets gave Pelicans a P600,000, non-interest-bearing note, payable in five equal annual installments of P120,000 with the first payment due on December 31, 2023. There was no established price for the equipment and the note has no ready market value. The prevailing rate of interest for a similar note at January 1, 2023 was 12% Present value (PV) and future value (FV) factors for 5 periods at 12% are: PV of P1-0.57 PV of an annuity of P1-3.60FV of P1-1.76 FV of an annuity of P1-6.35 Question:35. How much is the amortized cost of the notes receivable at December 31, 2023? A. P483,840B. P432,000C. P363,840D. P236,540