Question
On January 1, 2022, AA Company sold an equipment costing P5,000,000 and accumulated depreciation of P1,500,000. AA received a P1,000,000 cash and a 10%, 5-year,
On January 1, 2022, AA Company sold an equipment costing P5,000,000 and accumulated depreciation of P1,500,000. AA received a P1,000,000 cash and a 10%, 5-year, P7,000,000 note receivable every December 31 in equal annual installment of P1,000,000 plus interest starting December 31, 2022. Interest effective on this note when received is at 8%.
How much is the interest income in AAs statement of comprehensive income for the period ending December 31, 2022?
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Advanced Management Accounting
Authors: Maurice L. Hirsch Jnr.
2nd Edition
1861526768, 978-1861526762
