On January 2, 2024, Miniso Company sold equipment with a carrying amount of P500,000 in...
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Accounting
On January 2, 2024, Miniso Company sold equipment with a carrying amount of P500,000 in exchange for P100,000 cash and a P600,000 non-interest-bearing collectible in three equal annual installment every December 31.
There was not established exchange price for the equipment. The prevailing rate of interest for a note of this type at January 2, 2024 was 10%.
The present value of 1 at 10% for three periods is 0.751315. present value of annuity of 10% for 3 periods is 2.486852.
1. How much should Miniso Company report as interest income in its 2024 profit or loss?
2. What is the amortized cost of the note receivable on December 31, 2024?
3. How much should Miniso Company report as (loss) on sale of equipment in 2024?
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