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On January 1, 2009, EBTG Company sold an equipment costing P800,000 and with accumulated depreciation of P450,000 to BTH Corporation. EBTG received a consideration of
On January 1, 2009, EBTG Company sold an equipment costing P800,000 and with accumulated depreciation of P450,000 to BTH Corporation. EBTG received a consideration of P100,000 and a non-interest bearing note for P400,000 due on December 31, 2011. The prevailing interest for a note of this type is 15%.
My questions:
- The entry for the acquisition of the equipment in the books of accounts of BTH will show a debit of?
- The present value of the notes payable issued by BTH is?
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