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At what amount would the land be recognized at july

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On July 1, 2020, the FPJ Company purchased land by issuing a four year non- interest bearing note for P3,000,000 payable in annual installments of P750,000 due every June 30, starting on June 30, 2021. There was no equivalent cash price for the land and the note has no ready market. The prevailing rate of interest for a note of this type is 8%. Assume the company's year-end or reporting period is June 30.

Problem 1: At what amount would the land be recognized at July 1, 2020?

Problem 2: What is the amount of interest expense and the discount amortization for the year ended June 30, 2021?

Problem 3: What is the carrying amount of the note at June 30, 2022?

Problem 4: In relation to Q3, what part of the carrying amount at June 30,2022 is shown as current and what part is non-current, respectively?

Reference no: EM132867218

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