Problem
On December 31, 2019, ABC Company sold construction equipment to xyz, inc. For p1,800,000. The equipment had a carrying amount of p1,200,000. XYZ paid p300,000 cash on December 31, 2019 and signed a p1,500,000 note bearing interest at 10% payable in five annual installments of p300,000. Abc appropriately accounts for the sale under the installment method. On December 31, 2020, xyz paid p300,000 principal and p150,000 interest. For the year ended December 31, 2020, what total amount of revenue should ABC recognize from the construction equipment sale and financing?