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What is the total cost of the two units of equipment

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Question - Extravagant Company acquired two units of equipment on December 31, 2021. The first equipment was purchased in exchange for a ten-year non-interest bearing note requiring annual payment of P 1,000,000 every December 31 starting December 31, 2022. The second equipment was acquired by issuing a two year P 6,000,000 non-interest bearing note. The prevailing rate for notes of these types on December 31, 2021 was 12%. What is the total cost of the two units of equipment?

Reference no: EM133076091

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