What amount should be reported as interest income

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Question - On January 1, 2021, CPA Co. sold equipment with a carrying amount of P4,800,000 in exchange for a P6,000,000 noninterest-bearing note due January 1, 2024. There was no established price for the equipment. The prevailing rate of interest for a note of this type on January 1, 2021 was 10%. The present value of 1 at 10% for three periods is 0.75. What amount should be reported as interest income for 2021?

Reference no: EM132924096

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