note receivable. Principal is due in diree equal annual installments. interests on the outstanding principal balance are also due annually and are to be collected together with the periodic collections on the principal. The prevailing interest rate for this type of note is 12%. How much is the carrying amount of the receivable on December 3 1, 20x 1? a. 530,261 b. 1,000,532 c. 673,531 (1.239361 Note with below market interest (compound interest) - Principal and interests due at rcnatnrityr 22. [in January 1, 20:: 1, ABC Co. sold machinery costing F2,000,000 with accumulated depreciation of P950000 in exchange for a 3year, P1,2 00,000 note receivable. Principal and interest at 3% are due on January 1, 20x4. The prevailing interest rate for this type of note is 12%. How much is the carrying amount of the receivable on initial recognition date? a. 1,311,222 b. 2,000,000 c. 933,33? :1. 354,136 Total interest income over the life of a note 23.2180 Co. received a P1,000,000, 3%, 5-year note that requires five equal annual year-end payments. The effective interest rate on the note is 9%. How much is total interest revenue to be earned on the note? a. 250,433 b. 223,074 c. 25,332 :1. 225,332 Nan-interest bearing note with deferred uniform payments 24. On January 1, 201:1, ABC Co. sold a used equipment in exchange for a P1,200,000 noninterest-bearing note receivable due in three equal annual installments starting January 1, 201:4. The current market rate of interest on January 1, 20x1 is 12%. How much is the carrying amount of the receivable on initial recognition date? a. 390,365 b. 223,360 c. 235,390 d. 321,060