What the hawkeye company uses the calendar year

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Question 1: On January 1, 2017 Hawkeye Company sold a parcel of land which it has acquired previously for P215,000 and received in exchange a non-interest bearing note whose face value amounted to P450,000. The note shall be collected every December 31 as follows: P100,000 in 2017; P150,000 in 2018 and P200,000 in 2019. The effective interest rate for a similar note was 8%. Hawkeye Company uses the calendar year for reporting purposes

• Gain (loss) on the sale of the land

• Interest income for 2017

• Note receivable reported in the non-current asset section in the December 31, 2018 statement of financial position

Reference no: EM132571272

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