Question
On January 1, 2020 Jane Company sold equipment with a carrying amount of P4,800,000 in exchange for a P6,000,000 noninterest-bearing note due January 1, 2023.
On January 1, 2020 Jane Company sold equipment with a carrying amount of P4,800,000 in exchange for a P6,000,000 noninterest-bearing note due January 1, 2023. There was no established exchange price for the equipment. The prevailing rate of interest for a note of this type is 10%. Present value factor of 1 at 10% for three periods is0.75and PV factor of an ordinary annuity at 10% for three periods is2.49
Answer the following:
Interest income in 2020?
Gain or loss on sale of equipment?
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Taxation Of Individuals And Business Entities 2015
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
6th Edition
978-1259206955, 1259206955, 77862368, 978-0077862367
