Make the present value of the notes payable issued by BTH

Reference no: EM132640732

Question - On January 1, 2009, EBTG Company sold an equipment costing P800,000 and with accumulated depreciation of P450,000 to BTH Corporation. EBTG received a consideration of P100,000 and a non-interest bearing note for P400,000 due on December 31, 2011. The prevailing interest for a note of this type is 15%.

Required -

1. Make the entry for the acquisition of the equipment in the books of accounts of BTH will show a debit?

2. Make the present value of the notes payable issued by BTH?

Reference no: EM132640732

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