On January 1, 2022, AA Company received cash of P1,000,000 and a 4-year, noninterest bearing note to be collected in equal amounts of P600,000 every December 31 of each year. AA company sold an old furniture costing P3,000,000 and carrying amount of P2,200,000 on date of sale. Interest effective on January 1, 2022 is 5%. How much is the interest income in AA's statement of comprehensive income for the period ending December 31, 2022?

Answer rating: 100% (QA)

Step 1 of 2 Calculate the amount at which the notes payabl... View the full answer