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Question - On January 1, 2020, King Company sold equipment by receiving cash of P2,000,000 and a 10% 4-year notes receivable in an equal annual installment of P1,000,000 plus interest based on the outstanding balance of the note at the end of each year. Initially, King Company recorded a discount on notes receivable amounting to P160,442. on December 31, 2021, the amortization of discount on notes receivable is P48,038. At the end of 2022, the balance of the unamortized discount is P17,857.
Required - What is the carrying amount of the notes receivable reported in the current asset section as of December 31, 2021?
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