Case 1

Date Principal Interest Total PV factor

12/31/20 400,000 120,000 520,000 0.892857
12/31/21 400,000 80,000 480,000 0.797194
12/31/22 400,000 40,000 440,000 0.711780
PV as of 1/1/2020

12/31/20 1,200,000 0.1 120,000

12/31/21 800,000 0.1 80,000
12/31/22 400,000 0.1 40,000

Selling price
Cash received 500,000
PV of NR 1,160,122 1,660,122
CV of equipment
Cost 2,000,000
Acc. dep. 300,000 1,700,000
Loss on sale 39,878

FV of note 1,200,000
PV of note 1,160,122
Discount 39,878

Case 2

Date Principal Interest Total PV factor

07/01/21 400,000 120,000 520,000 0.925926
07/01/22 400,000 80,000 480,000 0.857339
07/01/23 400,000 40,000 440,000 0.793832
PV as of 07/01/2020

07/01/21 1,200,000 0.1 120,000

07/01/22 800,000 0.1 80,000
07/01/23 400,000 0.1 40,000

Selling price
Cash received 500,000
PV of NR 1,242,290 1,742,290
CV of eqp.
Cost 2,000,000
Acc. dep. 500,000 1,500,000
Gain on sale 242,290

FV of note 1,200,000
PV of note 1,242,290
Premium 42,290
Case 3

PV of notes receivable
(400,000 x 2.577097) 1,030,839

Selling Price 1,530,839

CV of eqp. 1,500,000
Gain on Sale 30,839

Face value 1,200,000

PV 1,030,839
Discount 169,161

Case 4
PV of notes receivable
(1,200,000 x 1.08^-3) 952,599

Selling Price 1,452,599

CV of eqp. 1,500,000
Loss on Sale - 47,401

FV 1,200,000
PV 952,599
Discount 247,401
 Date Principal NI (10%)
464,286 01/01/20
382,653 12/31/20 400,000 120,000
313,183 12/31/21 400,000 80,000
1,160,122 12/31/22 400,000 40,000

Interest income = based on effective interest

01/01/20 Cash 500,000

Notes Receivable 1,200,000
Acc. depreciation 300,000
Loss on Sale 39,878
Equipment 2,000,000
Discount on NR 39,878

12/31/20 Cash 520,000

Discount 19,215
Notes R. 400,000
Interest Income 139,215

12/31/21 Cash 480,000

Discount 13,520
Notes R. 400,000
Interest Income 93,520

12/31/22 Cash 440,000

Discount 7,143
Notes R. 400,000
Interest Income 47,143

Date Principal NI (10%)

481,481 07/01/20
411,523 12/31/20 60,000
349,286 07/01/21 400,000 60,000
1,242,290 12/31/21 40,000
07/01/22 400,000 40,000
12/31/22 20,000
07/01/23 400,000 20,000

07/01/20 Cash 500,000

Notes R. 1,200,000
Acc. Depreciation 500,000
Premium 42,290
Equipment 2,000,000
Gain 242,290

12/31/20 Interest Rec. 60,000

Interest Income 49,692
Premium 10,308

07/01/21 Cash 520,000

Interest Income 49,692
Prmeium 10,308
Notes R. 400,000
Interest Rec. 60,000
12/31/21 Interest Rec. 40,000
Interest Income 32,867
Premium 7,133

07/01/22 Cash 480,000

Interest Rec. 40,000
Notes R. 400,000
Premium 7,133
Interest Income 32,867

12/31/22 Interest Receivable 20,000

Interest Income 16,296
Premium 3,704

07/01/23 Cash 440,000

Interest Rec. 20,000
Notes R. 400,000
Premium 3,704
Interest Income 16,296

Date Principal EI (8%)

01/01/20
12/31/20 400,000 82,467
12/31/21 400,000 57,064
12/31/22 400,000 29,630

01/01/20 Cash 500,000

Notes Rec. 1,200,000
Acc. Dep. 500,000
Equipment 2,000,000
Discount 169,161
Gain 30,839

12/31/20 Cash 400,000

Discount 82,467
Notes R. 400,000
Interest Income 82,467

12/31/21 Cash 400,000

Discount 57,064
Notes R. 400,000
Interest Income 57,064

12/31/22 Cash 400,000

Discount 29,630
Notes R. 400,000
Interest Income 29,630

Date EI (8%) CV
01/01/20 952,599
12/31/20 76,208 1,028,807
12/31/21 82,305 1,111,111
12/31/22 88,889 1,200,000

01/01/20 Cash 500,000

Notes R. 1,200,000
Acc. Dep. 500,000
 Loss on Sale 47,401
Equipment 2,000,000
Discount 247,401

12/31/20 Discount on NR 76,208

Interest Income 76,208

12/31/21 Discount on NR 82,305

Interest Income 82,305

12/31/22 Discount on NR 88,889

Interest Income 88,889

Cash 1,200,000
Notres Receivable 1,200,000
 EI (12%) Amortization CV
1,160,122
139,215 19,215 779,337
93,520 13,520 392,857
47,143 7,143 - 0

As of 12/31/20, what is the current and noncurrent portion of receivables?

Principal, 12/31/21 400,000

Amort. 12/31/21 - 13,520
Current portion 386,480 (or 779,337 - 392,857)

CV, 12/31/20 779,337

Current portion - 386,480
Noncurrent 392,857

Previous CV - Principal - NI + EI = Current CV

EI - NI = Discount/Premium (amortization)

EI (8%) Amortization CV
1,242,290
49,692 10,308 1,231,982
49,692 10,308 821,674
32,867 7,133 814,540
32,867 7,133 407,407
16,296 3,704 403,704
16,296 3,704 -

What is the current and noncurrent portion as of 12/31/20?

CV, 12/31/20 1,231,982

CV, 12/31/21 - 814,540
Current, 12/31/20 417,441 (or 400,000 + 10,308 + 7,133)

CV, 12/31/20 1,231,982

Current, 12/31/20 - 417,441
Nonurrent, 12/31/20 814,540 (or 800,000 + 7,133 + 3,704 + 3,704)
 CV
1,030,839
713,306
370,370
0

What is the current and noncurrent portion as of 12/31/20?

Principal, 12/31/21 400,000

Discount, 12/31/21 - 57,064
Current, 12/31/20 342,936 (or 713,306 - 370,370)

Principal, 12/31/22 400,000

Discount, 12/31/22 - 29,630
Nonurrent, 12/31/20 370,370 (or 713,306 - 342,936)

Noncurrent
Current