Question 14 2 pts On January 1, 2020, A Company sold a machinery to B...
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Question 14 2 pts On January 1, 2020, A Company sold a machinery to B Company for P3,500,000, P400,000 more than the current fair value of the machine. Immediately, B Company leased the machinery back to A Company for advance annual payments of P100,000 for a period of 5 years. The lease had an implicit rate of 9%. Before the sale, the machinery which was bought by A Company for P3,000,000 had an accumulated depreciation of P200,000. Determine the reduction to the Financial Asset in B's books as a result of the payment made in 2020. Round final answer to nearest peso. Use PVF rounded to four decimal - points. Question 14 2 pts On January 1, 2020, A Company sold a machinery to B Company for P3,500,000, P400,000 more than the current fair value of the machine. Immediately, B Company leased the machinery back to A Company for advance annual payments of P100,000 for a period of 5 years. The lease had an implicit rate of 9%. Before the sale, the machinery which was bought by A Company for P3,000,000 had an accumulated depreciation of P200,000. Determine the reduction to the Financial Asset in B's books as a result of the payment made in 2020. Round final answer to nearest peso. Use PVF rounded to four decimal - points
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