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Question - X Company purchased a special equipment by signing a note with the seller, requiring down payment of P100,000, payment of P120,000 one year from purchase, and P80,000 three years from purchase. There is no available market value for the equipment. The note is non-interest bearing, but the going rate of similar notes is 10%. Present value of 1 at 10% are as follows: for 1 period - 0.909; for 2 periods - 0.826; and for 3 periods - 0.751. At what amount should the note be recognized upon purchase of this equipment?
a. P250,100
b. P269,160
c. P300,000
d. P169,160
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