Find how much non-current portion of notes payable on dec

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On January 1, 2020, SANAOL Company acquired a tract of land for P5,000,000. SANAOL Company paid P1,000,000 down and signed a non-interest bearing note for the balance which is payable in 4 equal annual payments every December 31 of each year. There was no established exchange price for the land and the note had no ready market. The prevailing interest rate for this type of the note was 12%. The present value of note on January 1, 2020 is P3,037,300.

Problem 1: How much is the non-current portion of notes payable on December 31, 2020?

Reference no: EM132714077

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