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On Oct 1, 2020, ABC Company purchased equipment, paying P100,000 down and issuing a one-year, non-interest-bearing note for P200,000. There is no known market value
On Oct 1, 2020, ABC Company purchased equipment, paying P100,000 down and issuing a one-year, non-interest-bearing note for P200,000. There is no known market value for the equipment. The prevailing market rate of interest for similar transactions at that time is 12%. How much is the discount on notes payable? a. P 22, 429 b. P 21, 429 c. P 22, 439 d. P 21, 439
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Advanced Financial Accounting
Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay
6th edition
978-0137030385
