On October 1, 2020, ABC Manufacturing sold a tract of land that originally cost P400,000....
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On October 1, 2020, ABC Manufacturing sold a tract of land that originally cost P400,000. ABC received a P600,000, 6% note as payment for the land. The principal amount of the note is payable on September 30, 2023. Interest is payable every anniversary dates - September 30, 2021, September 30, 2022 and September 30, 2023. On October 1, 2020, the prevailing rate of interest for a similar obligation is 10%. On this date, there is no available cash price for the land. PV of a single payment at 6%- 0.8396; PV of a single payment at 10%- 0.7513; PV of ordinary annuity at 6%- 2.6730; PV of ordinary annuity at 10%- 2.4869. ABC's accounting period ends on December 31.
How much is the amortized cost/carrying value of the note receivable reported in ABC's statement of financial position at December 31, 2021?
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