Question
On 12-31-19, Austin entered into an agreement that required Austin to pay a vendor $50 every year on 12-31 until 2064. The agreement required Austin
On 12-31-19, Austin entered into an agreement that required Austin to pay a vendor $50 every year on 12-31 until 2064. The agreement required Austin to make the first annual payment on 12-31-20. Assume the market rate of interest for Austin is 3%. As of 12-31-19 what was the present value of Austin’s obligation?
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Intermediate Accounting Reporting and Analysis
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
2nd edition
9781305727557, 1285453824, 9781337116619, 130572755X, 978-1285453828
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