A Company acquired a packaging machine from Taylor Corporation. Taylor completed the construction of the...
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Accounting
A Company acquired a packaging machine from Taylor Corporation. Taylor completed the construction of the machine on January 1, 2029. In payment for the P3 million machine, A Company issued a 4-year interest- bearing note to be paid in four equal payments at the end of each year. Interest is 10% of the unpaid balance to be paid at the end of each year. Assume prevailing interest rate is 14%. At what amount should the note be recorded on January 1, 2029?
Round off PV factor to 4 decimal places. Round ofhinal answer to the nearest peso.
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