On January 1, 2017 Persephone Company sold a piece of transportation equipment with a historical cost of P1,000,000 and accumulated depreciation of P300 000 in exchange for cash of P100 000 and a noninterest-bearing note receivable of P800,000 due on January 1, 2020. The prevailing rate of interest for this type of note is 12%. How much is the carrying amount of the receivable on December 31. 2018?n

Exercise 13.15. Suppose that m is an integer that is not the square of an- other integer. Review the steps in Exercise 13.14 and observe that they can all be carried out for m in place of 2. In other words, we form a set K of numbers of the form a +by, with = m. Then we define addition and multiplication and see easily that we get a ring, and then we check that in fact, K is a field. 13.4 Quadratic Field Constructions 217 Let us try the same idea for the construction of new fields in a different setting. Consider the field F3, writing its three elements as 0, 1, and 2. We know that 1 is a square in F3, but 2 is not. Suppose we wish to construct a field extension of F3 that contains a square root of 2. Since 2 = 1 in F3, we can also view the problem as that of trying to construct a square root of -1, just as we did starting from R. Let us imitate what we have done in adding a square root of -1 to R and a square root of 2 to 0