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On December 31, 2019, Mozart Corporation sold for P50,000 an old machine having an original cost of P90,000 and a carrying amount of P40,000. The
On December 31, 2019, Mozart Corporation sold for P50,000 an old machine having an original cost of P90,000 and a carrying amount of P40,000. The terms of the sale were as follows: 1) P10,000 down payment; and 2) P20,000 payable on December 31 each of the next two years. The agreement of sale made no mention of interest; however, 9% would be a fair rate for this type of transaction. The PV of 1, 9% ordinary annuity 1.7591 The PV of 1, 9% in two periods 0.8417
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