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What amount of the note receivable be classified

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Question - In your audit of AA Company, you noted that on January 1, 2018, it sold a tract of land that was acquired several years ago for P2,800,000. BBB Company received a non-interest note for P6,000,000 due on December 31, 2020 in exchange for the land. There is no readily market value for the land, but the current market rate of interest for comparable notes is 15%. (Round off to 4 decimal places PVF).

A. What is the amount of interest revenue recognized in Antonio's profit or loss for the year 2019?

B. What is the carrying value of the note at December 31, 2019?

C. What amount of the note receivable be classified as current asset in the statement of financial position at December 31, 2019?

Reference no: EM132711135

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