On October 1, 2025, Marigold Equipment Company sold a pecan-harvesting machine to Valco Brothers Far payment Valco Brothers Farm gave Arden a 2-year, $169,200, 8% note (a realistic rate of interest for a note required interest to be paid annually on October 1. Marigold's financial statements are prepared on a calen

Anxious Company acquired two items of machinery. On December 31, 2020, Anxious Company purchased a machine for non-interest bearing note requiring ten payments of P500,000. The first payment was made on December 31, 2021, and the others are due annually on December 31.  The prevailing rate of interest  for this type of note at date of issuance was 12%. The present value of ordinary annuity of 1 @ 12% is 5.33 for nine periods and 5.65 for ten periods. On December 31, 2020, Anxious Company acquired used machinery by issuing the seller a two-year, noninterest bearing note for P3,000,000. In recent borrowing, the entity has paid a 12% interest for this type of note. The present value of 1 @ 12% for 2 years is 0.80 and the present value of an ordinary annuity of 1 @ 12% for 2 years is 1.69. What is the total cost of machiery?

On January 1, 2021, Glanville Company sold goods to Otter Corporation. Otter signed an installment note requiring payment of $21,500 annually for five years. The first payment was made on January 1, 2021. The prevailing rate of interest for this type of note at date of issuance was 10%. Glanville should record sales revenue in January 2021 of: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)   Multiple Choice   $107,500   $81,502   $89,652   None of these answer choices are correct.

On January 1, 20x9, Fairness Company sold a tract of land that was acquired years ago for P 3,000,000. Fairness received a three year 15% interest bearing note for P 6,000,000 in exchange for the land, but the current market rate of interest for comparable notes is 10%. The note is payable in equal annual instalments of P 2,000,000 every December 31 starting December 31, 20x9.   a. Compute for the carrying value of the note on January 1, 20x9b. Compute for the gain or loss on salec. Compute for the interest income recognized in 20x11.d. Compute for the carrying value of the note in December 31, 20x10e. Prepare all entries.