Question
What is the carrying amount of the note as of December 31, 2022? On January 1, 2022. TGIG sold equipment with a historical cost of
What is the carrying amount of the note as of December 31, 2022?
On January 1, 2022. TGIG sold equipment with a historical cost of P10,000,000 and accumulated
depreciation of P5,500,000 in exchange for a P6,000,000 non-interest-bearing note due in annual
installments as follows:
December 31. 2022 - 3, 000, 000
December 31, 2023 - 2, 000, 000
December 31 2024 - 1, 000, 000
There was no exchange price for the equipment. The prevailing rate of interest for a note of this type on
January 1, 2022, was 10%. (Round off present value factors to four decimal places.
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Intermediate accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
7th edition
978-0077614041, 9780077446475, 77614046, 007744647X, 77647092, 978-0077647094
