Question
On January 1, 20x1, ABC Co. sold a transportation equipment with a historical cost of 1,000,000 and accumulated depreciation of 300,000 in exchange for cash
On January 1, 20x1, ABC Co. sold a transportation equipment with a historical cost of 1,000,000 and accumulated depreciation of 300,000 in exchange for cash of 100,000 and a noninterest-bearing note receivable of 800,000 due on January 1, 20x4. The prevailing rate of interest for this type of note is 12% How much is the carrying amount of the receivable on December 31, 20x2?
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Financial and Managerial Accounting
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
3rd edition
978-1-119-3916, 1119392132, 1119392136, 9781119391609, 1119391601, 978-1119392132
