Question
17)On December 31, 2019, Wow Company finished consultation services and accepted in exchange a promissory note with a face value of P300,000, a due date
17)On December 31, 2019, Wow Company finished consultation services and accepted in exchange a promissory note with a face value of P300,000, a due date of December 31, 2022, and a stated rate of 5%, with interest receivable at the end of each year. The fair value of the services is not readily determinable and the note is not readily marketable. Under the circumstances, the note is considered to have an appropriate imputed rate of interest of 10%.
The service revenue to be recognized for the year ended December 31, 2019 is
O 247,920
O 273,953
O 300,000
O 262,694
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