Question: Problem B (2 points each) On January 1, 20x1, ABC Co. sold a tract of land that was acquired several years ago for P2,000,000. ABC

Problem B (2 points each) On January 1, 20x1, ABC Co.

Problem B (2 points each) On January 1, 20x1, ABC Co. sold a tract of land that was acquired several years ago for P2,000,000. ABC Co. received a non-interest bearing note for P4,000,000. The note is payable in equal annual installments of P500,000 every December 31, starting December 31, 20x1. The market interest for similar note was 16%. (Round present value factors to 2 decimal places.) 1. What is the carrying amount of the note receivable on January 1, 20x1? 2. What amount should be recognized as gain on sale of land in 20x1? 3. What is the carrying amount of the note receivable on December 31, 20x1

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