On December 31, 2020, Humility Company sold a machine to another entity in exchange for a noninterest-bearing note requiring ten annual payments of P500,000. The buyer made The market interest rate for similar notes at date of issuance Problem 6-9 (AICPA Adapted) the first payment on December 31, 2020. was 8%. Present value of 1 at 8% Period Present value of ordinary annuity of 1 at 8% 6.25 6.71 9 10 0.50 0.46 On December 31, 2020, what is the carrying amount of note receivable? a. 2,250,000 b. 2,300,000 c. 3,125,000 d. 3,355,000