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Compute total interest expense in the first year

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Reference no: EM132828401

Question - At the beginning of the year, Multiple Company issued three notes described below. Interests and principal are assumed to be paid at the end of the year.

1. Two-Year, 12%, P 600,000 in exchange of tract of Land. The market rate is 12%.

2. A One Year, 6%, P 100,000 for an office equipment that has a fair value of P 94,643.

3. Three-year Installment note, The note is to be repaid in equal installments of P 1,000,000 per year beginning one year hence. The current market rate is 12%

Required -

a) Compute the total carrying value of the notes at the end of second year?

b) Compute total interest expense in the first year?

c) What is the carrying Value of the total notes after a year?

d) Compute total interest expense in the second year?

Reference no: EM132828401

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