Persever Company is a dealer in equipment. On December 21, 2021, the enitity sold an equipment in exchange for a noninterest bearing note requiring five annual payments of P500,000. The first payment was made on December 31, 2022. The market interest rate for similar notes was 8%. PV of 1 at 8% for 5 periods 0.68 PV of an ordinary annuity of 1 at 8% for periods 3.99 What is the amount of interest income should be reported for 2023?
Persever Company is a dealer in equipment. On December 21, 2021, the enitity sold an equipment in exchange for a noninterest bearing note requiring five annual payments of P500,000. The first payment was made on December 31, 2022. The market interest rate for similar notes was 8%. PV of 1 at 8% for 5 periods 0.68 PV of an ordinary annuity of 1 at 8% for periods 3.99 What is the amount of interest income should be reported for 2023?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Persever Company is a dealer in equipment. On December 21, 2021, the enitity sold an equipment in exchange for a noninterest bearing note requiring five annual payments of P500,000. The first payment was made on December 31, 2022.
The market interest rate for similar notes was 8%.
PV of 1 at 8% for 5 periods 0.68
PV of an ordinary annuity of 1 at 8% for periods 3.99
What is the amount of interest income should be reported for 2023?
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