On January 1,2021, ABC Corporation purchased a land for P 15,000,000. In exchange of the land, ABC issued a non-interest bearing note which is due on December 31,2025.

There is no readily available market value for the building, but the current market rate of interest for comparable notes is 15%.

How much should be presented as non-current liabilities in the notes payable balance as of December 31,2021 in the statement of financial position?

Answer rating: 100% (QA)

To determine the amount that should be presented as noncurrent liabilities in the notes payable bala... View the full answer