• On January 1, 2019, Annoying Prince Chemicals purchased a machine in exchange for a noninterest bearing note requiring five payments of P700,000. The first payment was made on December 31, 2019, and the others are due annually on December 31. The prevailing rate of interest for this type of note at date of issuance was 12%. The machine is estimated to have a five year useful life with no residual value.
• On January 1, 2019, Annoying Prince Chemicals issued zero-coupon notes with a face value of P700,000 for P606,000. The notes mature in five years. Required: Present an excerpt of the PPE Rollforward as at and for the years ended December 31, 2019 and 2020. And Present the following note disclosures for Annoying Prince Chemicals long-term debt as at and for the years ended December 31, 2019 and 2020.