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What amount should be reported as interest income

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Question - On January 1, 2022, GG Company sold equipment with a carrying amount of P4,608,000 in exchange for a P5,760,000 noninterest-bearing note due January 1, 2025. There was no established exchange price for the equipment. The prevailing rate of interest for a note of this type was 10%. What amount should be reported as interest income in 2022? What amount should be reported as gain or loss on sale of equipment?

Reference no: EM133178286

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