Problem 8-22 (AIСРА Adapted)On January 1, 2020, Jonathan Company borrowed P500,0008% note due in four years. The present value of the note onthe date of issuance was P367,500.The entity elected irrevocably the fair value option inmeasuring the note payable. On December 31, 2020, the fairvalue of the note is P408,150.1. What is the carrying amount of the note payable onDecember 31, 2020?a. 500,000b. 367,500с. 408,150d. 460,0002. What amount should be reported as interest expense for2020?а. 40,000b. 29,400с. 32,562d. 20,0003. What amount of gain from change in fair value of the notepayable should be reported for 2020?а. 132,500b. 172,50091,850d. 29,400с.4. At what amount should the discount on note payable bepresented on December 31, 2020?а. 182,500b. 103,100C.91,850.d.299CS Scanned with CamScanner

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On January 1, 2020, Jonathan Company borrowed P500,000 8% note due in four years. The present value of the note on the date of issuance was P367,500. The entity elected irrevocably the fair value option in measuring the note payable. On December 31, 2020, the fair value of the note is P408,150. 1. What is the carrying amount of the note payable on December 31, 2020? а. 500,000 b. 367,500 с. 408,150 d. 460,000 2. What amount should be reported as interest expense for 2020? а. 40,000 b. 29,400 c. 32,562 d. 20,000 3. What amount of gain from change in fair value of the note payable should be reported for 2020? а. 132,500 b. 172,500 91,850 d. 29,400 с.

On January 1, 2020, Jonathan Company borrowed P500,000 8% note due in four years. The present value of the note on the date of issuance was P367,500. The entity elected irrevocably the fair value option in measuring the note payable. On December 31, 2020, the fair value of the note is P408,150. 1. What is the carrying amount of the note payable on December 31, 2020? а. 500,000 b. 367,500 с. 408,150 d. 460,000 2. What amount should be reported as interest expense for 2020? а. 40,000 b. 29,400 c. 32,562 d. 20,000 3. What amount of gain from change in fair value of the note payable should be reported for 2020? а. 132,500 b. 172,500 91,850 d. 29,400 с.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 10MC: On January 1, 2019, Park Company accepted a 36,000, non-interest-bearing, 3-year note from a major...

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On January 1, 2020, Jonathan Company borrowed P500,000 8% note due in four years. The present value of the note on the date of issuance was P367,500. The entity elected irrevocably the fair value option in measuring the note payable. On December 31, 2020, the fair value of the note is P408,150 What is the carrying amount of the note payable on December 31, 2020? 500,000 367,500 408,150 460,000 What amount should be reported as interest expense for 2020? 40,000 29,400 32,562 20,000 What amount of gain from change in fair value of the note payable should be reported for 2020? 135,500 172,500 91,850 29,400 At what amount should the discount on note payable be presented on December 31, 2020? 132,500 103,100 91,850 0