Hot issue company sold its machine with a carrying amount of P2,000,000 in exchange for 2,500,000 non-interest bearing note that requires five annual payment of 500,000 starting on January 1, 2022 the market interest for similar notes was 10% and the relevant present value factors are: present value of a single payment at 10% for 5 periods 0.621 present value of an ordinary annuity of 1 at 10% for 5 periods 3.791 present value of annuity due of 1 at 10% for 5 periods 4.170 how much is the gain or loss on sale of machine? a. 104,500 gain b. 85,000 loss c. 85,000 gain d. 104,500 loss

Hot issue company sold its machine with a carrying amount of P2,000,000 in exchange for 2,500,000 non-interest bearing note that requires five annual payment of 500,000 starting on January 1, 2022 the market interest for similar notes was 10% and the relevant present value factors are: present value of a single payment at 10% for 5 periods 0.621 present value of an ordinary annuity of 1 at 10% for 5 periods 3.791 present value of annuity due of 1 at 10% for 5 periods 4.170 how much is the gain or loss on sale of machine? a. 104,500 gain b. 85,000 loss c. 85,000 gain d. 104,500 loss

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 27E

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Hot issue company sold its machine with a carrying amount of P2,000,000 in exchange for P2,500,000 non-interest-bearing note that requires five annual payment of P500,000 starting on January 1, 2022. The market interest for similar notes was 10% and the relevant present value factors are: Present value of a single payment at 10% for 5 periods 0.621 Present value of an ordinary annuity of 1 at 10% for periods 3.791 Present value of an annuity due of 1 at 10% for 5 periods 4.170 How much is the carrying amount of the notes on December 31, 2022?a. 1,743,500b. 2,000,000c. 2,082,050d. 1,585,050
Hot issue company sold its machine with a carrying amount of P2,000,000 in exchange for P2,500,000 non-interest-bearing note that requires five annual payment of P500,000 starting on January 1, 2022. The market interest for similar notes was 10% and the relevant present value factors are: Present value of a single payment at 10% for 5 periods 0.621 Present value of an ordinary annuity of 1 at 10% for periods 3.791 Present value of an annuity due of 1 at 10% for 5 periods 4.170 How much is the interest income for the year 2022?a. 139,550b. 158,500c. 379,100d. 189,550
Hot Issue Company sold its machine with a carrying amount of P2,000,000 in exchange for P2,500,000 non-interest-bearing note that requires five annual payment of P500,000 starting on January 1, 2022 2 pts The market interest for similar notes was 10% and the relevant present value factors are Present value of a single payment at 10% for 5 periods Present value of an ordinary annuity of 1 at 10% for 5 periods Present value of an annuity due of 1 at 10% for 5 periods 0.621 3.791 4.170 How much is the interest income for the year 20227 158.500
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January 1, 2018, Cursor Company sold goods to Matrix Company. Matrix signed a non-interest bearing note requiring payment of P60,000 annually every December 31 for seven years. The prevailing rate of interest for this type of note at the date of issuance was 10%. Information on present value factors is as follows: Periods Present Value of 1 at 10% PV of ordinary Annuity of 1 at 10% 6 0.56447 4.35526 7 0.51315 4.86842 What should be the amortized cost of the receivable on December 31, 2018?