Dharma sold a piece of equipment at the beginning of Year 1, receiving a $ 10,000, two-

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Dharma sold a piece of equipment at the beginning of Year 1, receiving a $ 10,000, two- year 1% note. Interest is paid at the end of each year. Market interest rates are in the range of 10%.

Required:

1. Calculate the present value of the note receivable.

2. Prepare entries for the sale, and cash collection each year for two years.

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Intermediate Accounting

ISBN: 978-0071339476

Volume 1, 6th Edition

Authors: Beechy Thomas, Conrod Joan, Farrell Elizabeth, McLeod Dick I

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Question Posted: Feb 17, 2015 08:03 AM

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Dharma sold a piece of equipment at the beginning of Year 1, receiving a $ 10,000, two-

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Requirement 1 Present value of principal 10000 PF 10 2 8265 Pr...View the full answer

Intermediate Accounting

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