Use the following information to answer the next four questions: The following long-term receivables were reported in the December 31, 2006, balance sheet XXX Corporation: Note receivable from sale of plant P3,000,000 Note receivable from officer P300,000 The following transactions during 2007 and other information relate to company's long- term receivables. The note receivable from sale of plant bears interest at 12% per annum. The note is payable in three annual installments of P1,000,000 plus interest on the unpaid balance every April 1. The initial principal and interest payment was made on April 1, 2007 The note receivable from officer is dated December 31, 2006, earns interest at 10% per annum, and is due on December 31, 2009. The 2007 interest was received on December 31, 2007 XXX sold a piece of equipment to YYY, Inc. on April 1, 2007, in exchange for a P400,00 non-interest-bearing note due on April 1. 2009. The note had no ready market, and there was no established exchange price for the equipment. The prevailing interest rate for a note of this type at April 1, 2007, was 12%. (Round the present value factor to three decimal places) . A tract of land was sold by XXX 10 ZZ2, Inc. on July 1, 2007, for P2,000,000 under an installment sale contract. zzz signed a four-year 11% note for P1.400,000 on July 1, 2007, in addition to the down payment of P600,000. The equal annual payments of principal and interest on the note will be P451,250 payable on July 1. 2008, 2009, 2010, und 2011. The land had an established cash price of P2,000,000 and its cost to XXX was P1,500,000. The collection of the installments on this note is reasonably assured 32. The amount to be reported as noncurrent receivables on the balance sheet at December 31. DOIT 32. The amount to be reported as noncurrent receivables on the balance sheet at December 31, 2007 is a. P3,096,242 b. P3,067,550 c. P3,221,550 dP3,250,242 33. The current portion of notes receivable on December 31, 2007 should be a P1.451.250 1 b. P1,297,250 c. P2,097,250 d. P2.297.250 34. The accrued interest receivable on December 31, 2007 should be P257,000 h P180.000 P285,692 d. P334 KO NEW 35. The total interest income for the year ended December 31, 2007 should be a. P427,000 Page 10 of 20 Use the following information to answer the next four questions: The following long-term receivables were reported in the December 31, 2006, balance sheet XXX Corporation: Note receivable from sale of plant P3,000,000 Note receivable from officer P300,000 The following transactions during 2007 and other information relate to company's long- term receivables. The note receivable from sale of plant bears interest at 12% per annum. The note is payable in three annual installments of P1,000,000 plus interest on the unpaid balance every April 1. The initial principal and interest payment was made on April 1, 2007 The note receivable from officer is dated December 31, 2006, earns interest at 10% per annum, and is due on December 31, 2009. The 2007 interest was received on December 31, 2007 XXX sold a piece of equipment to YYY, Inc. on April 1, 2007, in exchange for a P400,00 non-interest-bearing note due on April 1. 2009. The note had no ready market, and there was no established exchange price for the equipment. The prevailing interest rate for a note of this type at April 1, 2007, was 12%. (Round the present value factor to three decimal places) . A tract of land was sold by XXX 10 ZZ2, Inc. on July 1, 2007, for P2,000,000 under an installment sale contract. zzz signed a four-year 11% note for P1.400,000 on July 1, 2007, in addition to the down payment of P600,000. The equal annual payments of principal and interest on the note will be P451,250 payable on July 1. 2008, 2009, 2010, und 2011. The land had an established cash price of P2,000,000 and its cost to XXX was P1,500,000. The collection of the installments on this note is reasonably assured 32. The amount to be reported as noncurrent receivables on the balance sheet at December 31. DOIT 32. The amount to be reported as noncurrent receivables on the balance sheet at December 31, 2007 is a. P3,096,242 b. P3,067,550 c. P3,221,550 dP3,250,242 33. The current portion of notes receivable on December 31, 2007 should be a P1.451.250 1 b. P1,297,250 c. P2,097,250 d. P2.297.250 34. The accrued interest receivable on December 31, 2007 should be P257,000 h P180.000 P285,692 d. P334 KO NEW 35. The total interest income for the year ended December 31, 2007 should be a. P427,000 Page 10 of 20