FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On January 1, 2020, Daniel Company borrowed P600,000 10% note due in three years. The present value of the note on the date of issuance

On January 1, 2020, Daniel Company borrowed P600,000 10% note due in three years. The present value of the note on the date of issuance was P441,200. The entity elected irrevocably the fair value option in measuring the note payable. On December 31, 2020, the fair value of the note is P489,800. How much is the carrying amount of the note payable on December 31, 2020?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Becker CPA Exam Final Review Auditing

Becker CPA Exam Final Review Auditing

Authors: Becker

1st Edition

1943628521, 978-1943628520

More Books

Students also viewed these Accounting questions

Question

★★★★★
Spectrum Corporation has 600,000 shares of $75 par common stock outstanding. On February 13, Spectrum Corporation declared a 4% stock dividend to be issued April 30 to stockholders of record on March...

Answered: 1 week ago

Question

★★★★★
In Solved Problem 18.3, if the vast majority of all consumers knows the true prices at all stores and only a few shoppers have to incur a search cost to learn the prices, would the equilibrium be...

Answered: 1 week ago

Question

★★★★★
(Appendix) PURCHASES RECORDED GROSS. Dawson Enterprises uses the periodic system and records purchases gross. On a recent day, Dawson engaged in the following three transactions: LO2 a) Purchased...

Answered: 1 week ago

Question

★★★★★
After its first month of operation, the following amounts were taken from the accounting records of Polaris Realty Inc. as of November 30, 2011.Prepare an income statement for the month ending...

Answered: 1 week ago

Question

★★★★★
1 2 3 4 1 1.25 points Transactions costs are handled as follows under the FV-OCI investment model: Included in the cost of the investment Immediately expensed to income when incurred Included in...

Answered: 1 week ago

Question

★★★★★
2 Why is payback often used as the sole method of analyzing a 3 p

Answered: 1 week ago

Question

★★★★★
The data represent the cost, return on investment, and graduation rate for a random sample of fifty colleges or universities in the United States. The data is from payscale.com. The variable "Cost"...

Answered: 1 week ago

Question

★★★★★
Compute the increase in customer lifetime value (CLV) for a Rosewood patron under the proposed branding initiative. Your customer lifetime value analysis should use the Excel workbook (link posted...

Answered: 1 week ago

Question

★★★★★
A project manager is leading an agile team. The daily standups and iteration meetings are currently facilitated by the product owner. A team member contacts the project manager and mentions that they...

Answered: 1 week ago

Question

★★★★★
obin is filling out a performance review form for his employee, Sally, who has made more sales than anyone else in the department. Since Sally has very good sales skills, Robin rates Sally high...

Answered: 1 week ago

Question

★★★★★
Section Four 10 points Directions: Using your knowledge of contract formation and defenses, please review the following scenarios and state whether there is a valid contract, that is an offer,...

Answered: 1 week ago

Question

★★★★★
2. Describe an effective e-mail and Web use policy for a company. The Internet has become an extremely valuable business tool, but its also a huge distraction for workers on the job. Employees are...

Answered: 1 week ago

Question

★★★★★
7-10 In this project, youll use the Web to research alternative wireless services and use spreadsheet software to calculate wireless service costs for a sales force. You would like to equip your...

Answered: 1 week ago

Question

★★★★★
Respond favorably to the following e-mail from Sarah King, Instructor at Red River Vocational College: As I mentioned when you spoke to my Office Technology class last week, Red River is hosting a...

Answered: 1 week ago

Previous Question Next Question