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WACKY Inc. provided repair services to another entity on January 1 , 2 0 2 0 . In exchange for such services, WACKY Inc. received

WACKY Inc. provided repair services to another entity on January 1,2020. In exchange for such services, WACKY Inc. received P100,000 cash and a promissory note of P600,000, bearing an interest of (10% and which will mature on December 31,2022. The direct costs of providing the services amount to P220,000. On that date, the prevailing rate of interest for a similar note is 12%.
Determine:
1. The initial measurement of notes receivable;
2. The net amount to be presented in the statement of comprehensive income, assuming
(a) The principal is payable at maturity while nominal interest is payable annually.
(b) The principal is payable annually and nominal interest is payable annually.
(C) The principal is payable at annually while nominal interest is payable at maturity.
(d) The principal is payable at maturity and nominal interest is payable at maturity.

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