What the note will be reported on statement of financial

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Problem 1: On January 1, 2019, ASA-CPA Company sold land to DO-RO-TE-O Company. There was no established market price for the land. DO-RO-TE-O gave ASA-CPA a CHF2,400,000 Zero-interest-bearing note payable in three equal annual installments of CHF800,000 with the first payment due December 31, 2019. The note has no ready market. The prevailing rate of interest for a note of this type is 10%. The present value of a CHF2,400,000 note payable in three equal annual installments of P800,000 at a 10% rate of interest is CHF1,989,600. The note will be reported on DO-RO-TE-O 's 2019 statement of financial position at a carrying value of

Reference no: EM132793276

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