18Chapparal Inc. issued a 3-year noninterest-bearing $200,000 note in exchange for new piece of machinery. The implicit interest rate for this transaction is 6%. Upon issuance, at what amount does Chapparal record the machinery?

Present value of 1 for 3 periods at 6%............................................ .83962

Present value of 1 for 6 periods at 3%.......................................... .83748

Present value of annuity for 3 periods at 6%.................................. 2.67301

Present value of annuity for 6 periods at 3%................................ 5.41719

$167,924

$184,446

$188,679

$200,000

$177,271

19On January 1, 2019, Izakaya Corp. issues a 5-year 6% $1,000,000 bond for $1,000,000. The firm pays interest on June 30 and December 31. After 5 years, Izakaya repays the bond. Which of the following is true when Izakaya records the entry to repay the bond?

A gain is recognized

Assets, Liabilities, and Stockholders Equity decreases

Assets and Liabilities decrease, no effect on Stockholders Equity

A loss is recognized