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What is the carrying amount of notes receivable

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Question - On December 31, 2021, CPA Co. received two P1,000,000 notes receivable from customers in exchange for services rendered. On both notes, interest is calculated on the outstanding principal balance at the annual rate of 3% and payable at maturity. The note from Hart Company, made under customary trade terms, is due in nine months and the note from Maxx Company is due in five years. The market interest rate for similar notes on December 31, 2021 was 8%. The compound interest factors to convert future value into present value at 8% follow: (Present value of 1 due in nine months 0.944) (Present value of I due in five years 0.680) What is the carrying amount of notes receivable on December 31, 2021?

Reference no: EM132924089

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