What is the carrying amount of this note on December

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Question - Cong Company is a dealer in equipment. On January 1, 2020, Vy Company sold an equipment with a cost of P3,500,000 in exchange for a non-interest bearing note of P5,000,000 requiring a lump sum payment at the end of 5 years. The market interest for similar notes was 8%.

Period

PVF

1

.926

2

.857

3

.794

4

.735

5

.681

Required - What is the carrying amount of this note on December 31, 2020?

Reference no: EM132940285

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