Question: The answer is P411,680 . I just need the complete solution. On February 2, 2021, STU Company purchased a machine from VWX Corporation in exchange

The answer is P411,680. I just need the complete solution.

On February 2, 2021, STU Company purchased a machine from VWX Corporation in exchange for a non-interest bearing note requiring eight payments of P80.000. The first payment is to be made on February 2. 2022 and the others are due annually on February 2. At date of issuance, the prevailing rate of interest for this type of note was 11%. Present value (PV) factors are as follows: Period PV of ordinary annuity of 1 at 11% PV of annuity in advance of 1 at 11% 7 4.712 5.231 3 5.146 5.712 What is the initial carrying amount of the machine to be reported by Youth Company on February 2. 2021

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