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Problem 7 On January 1, 20x1, ABC Co. sold a transportation equipment with a historical cost of P1,000,000 and accumulated depreciation of P300,000 in exchange for cash of P100,000 and a noninterest-bearing note receivable of P800,000 due on January 1, 20x4. The prevailing rate of interest for this type of note is 12%. Prepare the amortization table using effective interest method. Problem 8 On January 1, 20x1, ABC Co. sold transportation equipment with a historical cost of P12,000,000 and accumulated depreciation of P7,000,000 in exchange for cash of P100,000 and a noninterest-bearing note receivable of P4,000,000 due in 4 equal annual installments starting on January 1, 20x1 and every January 1 thereafter. The prevailing rate of interest for this type of note is 12%. Prepare the amortization table using effective interest method