A company issued a P3 million three-year non-interest-bearing note on January 1, 2021, for a piece of land. The note was payable in three equal annual installments every December 31 starting December 31, 2021. The cash price equivalent of the land on January 1, 2021, was P2,401,800. What is the balance of the discount on notes payable on December 31, 2021?

Note: Round off PV factor to 4 decimals. round off final answer to the nearest peso. 

Answer rating: 100% (QA)

Solution Amount of note P3000000 Cash price of Land P2401800 Annual installment of note P3000000 3 ... View the full answer