5. On January 1, 2024, The Barrel Company purchased merchandise from a supplier. Payment was a noninterest-bearing note requiring five annual payments of $23,000 on each December 31 beginning on December 31, 2024, and a lump-sum payment of $130,000 on December 31, 2028. A 10% interest rate properly reflects the time value of money in this situation Determine amount at which Barrel should record the note payable and corresponding merchandise purchased on January 1, 2024

6. Employees of the Horizon Distributing Company will receive annual pension payments from the company when they retire. The employees will receive their annual payments for as long as they live. Assume on average each employee will receive 15 annual payments beyond retirement. As an employee of the firm, Tinker will receive $37,000 annual pension payments starting from Dec 31 of 2044. Compute the present value of the pension obligation to Tinker as of December 31, 2024. Assume a 12% interest rate explain in detail and show the work