kindly show computations.
Use the following information for the next four (4) questions: On December 31, 2020, Janice Company sold used equipment with carrying amount of P2,000,000 in exchange for a non interest bearing note of P5,000,000 requiring ten annual payments of P500,000. The first payment was made on December 1, 2021. The market interest for similar note was 12%. The present value of an ordinary annuity of 1 is 5.65 for ten periods and 5.33 for nine periods. 2) What is the carrying amount of the note receivable on December 31, 2020? A. 5,000,000 B. 2,825,000 C. 2,665,000 D. 4,500,000 3) What is the gain or loss on sale of equipment to be recognized in 2020? A. 3,000,000 B. 2,175,000 C. 825,000 D. O 4) What amount should be recognized as interest income for 2021? A. 600,000 B. 339,000 C. 319,000 D. 300,000 5) What is carrying amount of the note receivable on December 31, 2021? A. 2,664,000 B. 4,500,000 C. 2,825,000 D. 2,325,000Use the following information for the next four (4) questions: On December 31, 2020, Janice Company sold used equipment with carrying amount of P2,000,000 in exchange for a non interest bearing note of P5,000,000 requiring ten annual payments of P500,000. The first payment was made on December 1, 2021. The market interest for similar note was 12%. The present value of an ordinary annuity of 1 is 5.65 for ten periods and 5.33 for nine periods. 2) What is the carrying amount of the note receivable on December 31, 2020? A. 5,000,000 B. 2,825,000 C. 2,665,000 D. 4,500,000 3) What is the gain or loss on sale of equipment to be recognized in 2020? A. 3,000,000 B. 2,175,000 C. 825,000 D. O 4) What amount should be recognized as interest income for 2021? A. 600,000 B. 339,000 C. 319,000 D. 300,000 5) What is carrying amount of the note receivable on December 31, 2021? A. 2,664,000 B. 4,500,000 C. 2,825,000 D. 2,325,000Use the following information for the next three (3) questions: On January 1, 2023, Northface sold a machine in the ordinary course of business in exchange for a noninterest bearing note requiring ten annual payments of P1,000,000. The first payment was made on December 31, 2023. The market interest rate for similar note at date of issuance was 8%. The present value of an ordinary annuity of 1 at 8% is 6.71 for ten periods. The present value of annuity due of 1 at 8% is 7.25 for ten periods. 8) What is the carrying amount of the note receivable on January 1, 2023? A. 5,710,000 B. 7,250,000 C. 6,250,000 D. 6,710,000 9) What is the interest income for 2023? A. 500,000 B. 580,000 C. 536,800 D. 376,800 10) What is the carrying amount of note receivable on December 31, 2023? A. 6,246,800 B. 7,246,800 C. 6,830,000 D. 6,750,000
