On January 1, 2026, SALVO COMPANY sells its equipment with a carrying value of P160,000. The company receives a non-interest-bearing note due in 3 years with a face amount of P200,000. There is no established market value for the equipment. The prevailing interest rate for a note of this type is 12%. The following are the present value factors of 1 at 12%:Present value of 1 for 3 periods: 0.71178Present value of an ordinary annuity of 1 for 3 periods: 2.4018315. The gain or loss on the sale of e
On January 1, 2026, SALVO COMPANY sells its equipment wit…
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