Begin Again Company sold an equipment with carrying amount of P2,000,000 and received a noninterest-bearing note requiring payment of P500,000 annually for 10 years. The first payment is due December...

Extracted text: Begin Again Company sold an equipment with carrying amount of P2,000,000 and received a noninterest-bearing note requiring payment of P500,000 annually for 10 years. The first payment is due December 31, 2021. The prevailing rate of interest for this type of note at date of issuance is 12%. PV of 1 at 12% for 10 periods: 0.322 PV of ordinary annuity of 1 at 12% for 10 periods: 5.650 On December 31, 2020, what is the carrying amount of the note receivable? 5,000,000 2,175,000 1,610,000 2,825,000 What is the gain on sale of equipment to be recognized in 2020? 3,000,000 2,175,000 825,000