1. Grant Corporation is looking to purchase a building costing $940,000 by paying $320,000 cash on the purchase date, and agreeing to make payments every three months for the next five years. The first payment is due three months after the purchase date. Grant's incremental borrowing rate is 12%. Each of the payments is closest to: (Table A.1, Table A.2, Table A.3, and Table A.4) (Use appropriate factor(s) from the tables provided.)

$63,183.

$57,674.

$31,000.

$41,674.

2. KAJ Incorporated purchased a machine costing $272,000 by paying $37,200 and signing a $219,400 note payable. How would this transaction be reported within the cash flow from investing activities section of the cash flow statement?

It would not be reported in the investing activities section of the cash flow statement.

An outflow of $219,400.

An outflow of $272,000.

An outflow of $37,200.

RKJ Company has provided the following: 116,000 shares of $5 par value common stock are authorized 77,200 shares have been issued 69,400 shares are outstanding 3. Which of the following statements is correct?

RKJ can issue an additional 46,600 shares of common stock.

RKJ has 46,600 shares of treasury stock.

RKJ has 38,800 shares of treasury stock.

RKJ can resell 7,800 shares of common stock.