On January 1, Metlock, Inc. sold used equipment with a cost of $14,800 and a carrying amount of $2,300 to Bridgeport Corp. in exchange for a $4,900, three-year non-interest-bearing note receivable. Although no interest was specified, the market rate for a loan of that risk would be 8%. Assume that Metlock follows IFRS. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. (a) Your answer is correct. Prepare the entry to record the sale of Metlock's equipment and receipt of the note. (Round answers to 0 decimal places, eg. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Account Titles and Explanation Debit Credit Notes Receivable 3890 Accumulated Depreciation - Equipment 12500 Equipment 14800 Gain on Disposal of Equipment 1590 Table A.2 PRESENT VALUE OF 1 (PRESENT VALUE OF A SINGLE SUM) PVF..- 1 = (1+1) = (1+i) (n) ) periods 2% 3% 4% 6% 9% 10% % 12% 242% .97561 95181 92860 90595 88385 1 98039 2 96117 3 94232 492385 .90583 .97087 94260 5% .95238 90703 86384 82270 .78353 96156 92456 88900 85480 82193 8% 92593 85734 79383 73503 68058 94340 89000 83962 79209 .74726 91514 91743 .84168 77218 .70843 .64993 11% 90090 .81162 .73119 .65873 .59345 90909 .82645 175132 .68301 .62092 15% % .86957 75614 65752 .57175 49718 89286 .79719 .71178 63552 56743 88849 86261 6 88797 7 87056 8 85349 9 83676 10 82035 86230 84127 82075 80073 78120 83748 81309 78941 .76642 74409 .79031 75992 .73069 .70259 .67556 .74622 .71068 .67684 .64461 .61391 .70496 66506 .62741 59190 55839 63017 58349 54027 50025 46319 59627 54703 50187 46043 42241 56447 51316 46651 42410 38554 53464 .48166 43393 39092 35218 50663 45235 40388 36061 .32197 43233 37594 32690 28426 24719 11 12 13 14 15 80426 .78849 .77303 .75788 74301 .76214 .74356 .72542 .70773 69047 .72242 .70138 .68095 .66112 .64186 .64958 .62460 60057 57748 55526 .58468 55684 53032 50507 48102 52679 49697 46884 44230 41727 42888 39711 36770 34046 31524 38753 35554 32618 29925 27454 35049 .31863 28966 26333 23939 31728 28584 25751 23199 20900 28748 25668 22917 20462 18270 21494 .18691 .16253 14133 .12289 123456789w ngBu Engpw% 16 17 18 19 20 .72845 .71416 70016 68643 67297 .67362 .65720 64117 62553 61027 .62317 .60502 58739 57029 55368 53391 51337 49363 47464 45639 45811 43630 41552 39573 37689 39365 37136 35034 33051 31180 29189 27027 25025 23171 21455 25187 23107 21199 19449 .17843 21763 19785 17986 .16351 .14864 .18829 .16963 .15282 13768 .12403 .16312 14564 13004 .11611 10367 .10687 .09293 .08081 .07027 06110 21 22 23 24 25 .65978 .64684 .63416 62172 60953 59539 58086 .56670 55288 53939 53755 52189 .50669 49193 .47761 43883 42196 40573 39012 37512 35894 .34185 32557 31007 29530 29416 27751 26180 24698 23300 .19866 .18394 .17032 .15770 .14602 .16370 .15018 13778 .12641 .11597 .13513 12285 11168 .10153 09230 .11174 .10067 .09069 08170 07361 .09256 .08264 .07379 06588 05882 .05313 04620 .04017 03493 03038 02642 02297 26 27 28 29 30 59758 -58586 57437 56311 55207 52623 .51340 .50088 48866 47674 46369 45019 43708 42435 41199 36069 34682 33348 32065 30832 28124 26785 25509 24295 23138 21981 20737 .19563 18456 .17411 .13520 12519 .11591 10733 09938 10639 .09761 08955 08216 .07537 .08391 07628 06934 06304 05731 .06631 .05974 .05382 .04849 .04368 05252 04689 04187 03738 03338 .01997 01737 .01510 Table A.4 PRESENT VALUE OF AN ORDINARY ANNUITY OF 1 PVF-OA, (1+i i (n) periods 1 2 3 4 5 2% 98039 1.94156 2.88388 3.80773 4.71346 212% 97561 1.92742 2.85602 3.76197 4.64583 3 3% 5 5% 6% 8% 9% 10% 11% 12% 15% 97087 96154 95238 94340 92593 9174390909 90090 .89286 .86957 1.91347 1.88609 1.85941 1.83339 1.78326 1.75911 1.73554 1.71252 1.69005 1.62571 2.82861 2.77509 2.72325 2.67301 2.57710 2.53130 2.48685 2.44371 2.40183 2.28323 3.71710 3.62990 3.54595 3.46511 3.31213 3.23972 3.16986 3.10245 3.03735 2.85498 4.579714.45182 4.32948 4.21236 3.99271 3.88965 3.79079 3.69590 3.60478 3.35216 6 7 8 9 10 5.60143 5.50813 5.41719 5.24214 5,07569 4.91732 4.62288 4.48592 4.35526 4.23054 4.11141 3.78448 6.47199 6.34939 6.23028 6.00205 5.78637 5.58238 5.20637 5,03295 4.86842 4.71220 4,56376 4.16042 7.32548 7.17014 7.01969 6.73274 6.46321 6.20979 5.74664 5.53482 5.33493 5.14612 4.96764 4.48732 8.16224 7.970877.78611743533 7.10782 6.80169 6.24689 5.99525 5.75902 5.53705 5.32825 4.77158 8.98259 8.75206 8.53020 8.11090 7.721737.360096.71008 6.41766 6.14457 5.88923 5.650225.01877 9.78685 9.51421 9.25262 8.76048 8.30641 7.88687 7.13896 6.80519 6.49506 6.20652 5.93770 5.23371 10.57534 10.25776 9.95400 9.38507 8.86325 8.38384 7.53608 7.16073 6.81369 6.49236 6.19437 5.42062 11.34837 10.98319 10.63496 9.98565 9.39357 8.85268 7.90378 7.486907.10336 6.74987 6.42355 5.58315 12.10625 11.69091 11.29607 10.56312 9.89864 9.29498 8.24424 7.78615 7.36669 6.98187 6.62817 5.72448 12.84926 12.38138 11.93794 11.11839 10.37966 9.71225 8.55948 8.06069 7.60608 7.19087 6.81086 5.84737 11 12 13 14 15 16 17 18 19 20 13.57771 13.05500 12.56110 11.65230 10.83777 10.10590 8.85137 8.31256 7.82371 7.37916 6.97399 5.95424 14.29187 13.71220 13.16612 12.16567 11.27407 10.47726 9.12164 8.54363 8.02155 7.54879 7.11963 6.04716 14.99203 14.35336 13.75351 12.65930 11.68959 10.82760 9.37189 8.75563 8.20141 7.70162 7.24967 6.12797 15.67846 14.97889 14.32380 13.13394 12.08532 11.15812 9.60360 8.95012 8.36492 7.839297.36578 6.19823 16.35143 15.58916 14.87747 13.59033 12.46221 11.469929.81815 9.12855 8.51356 7.96333 7.46944 6.25933 Hugus Eng9a& 21 22 23 24 25 17.01121 16.18455 15.41502 14.02916 12.82115 11.76408 10.01680 9.29224 8.64869 3.07507 7.56200 6.31246 17.65805 16.76541 15.93692 14.45112 13.16800 12.04158 10.20074 9.44243 8.77154 8.17574 7.64465 6.35866 18.29220 17.33211 16.44361 14.85684 13.48857 12.30338 10.37106 9.58021 8.88322 8.26643 7.71843 6.39884 18.91393 17.88499 16.93554 15.24696 13.79864 12.55036 10.52876 9.70661 8.98474 8.34814 7.78432 6.43377 19.52346 18.42438 17.41315 15.62208 14.09394 12.78336 10.67478 9.82258 9.07704 8.42174 7.84314 6.46415 26 27 28 20.12104 18.95061 17.87684 15.98277 14.37519 13.00317 10.80998 9.92897 9.16095 8.48806 7.89566 6.49056 20.70690 19.46401 18.32703 16.32959 14.64303 13.21053 10.93516 10.02658 9.23722 8.45780 7.94255 6.51353 21.28127 19.96489 18.76411 16.66306 14.89813 13.40616 11.0510B 10.11613 9.30657 8.60162 7.98442 6.53351 21.84438 20.45355 19.18845 16.98371 15.14107 13.59072 11.15841 10.19828 9.36961 8.65011 8.02181 6.55088 22.39646 20.93029 19.60044 17.29203 15.37245 13.76483 11.25778 10.27365 9.42691 8.69379 8.05518 6,56598 30 (b) Prepare the entries to record the recognition of interest each year. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit (To record interest income in the first year) (To record interest income in the second year) (To record interest income in the third year)