Question: May I ask for an explanation and supporting solution in good accounting form to the problem for a better understanding. Thank you! On January 2,

May I ask for an explanation and supporting solution in good accounting form to the problem for a better understanding. Thank you!

On January 2, 2020, Magsaysay Company sold equipment with a carrying amount of P400,000 in exchange for a P600,000 4-year non-interest-bearing note due January 2, 2024. There was no established exchange price for the equipment. The prevailing rate of interest for a note of this type at January 2, 2020 was 10%. What is the carrying value of the note receivable as of December 31, 2022 Statement of Financial Position?

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