72. Short Company purchased land by paying $10,000 cash on the purchase date and agreeing to pay $10,000 for each of the next ten years beginning one-year from the purchase date. Short's incremental borrowing rate is 10%. At what amount would the land be reported at on the balance sheet? A. $100,000 B. $38,550 C. $110,000 D. $71,446

74. Libby Company purchased equipment by paying $5,000 cash on the purchase date and agreeing to pay $5,000 every six months during the next four years; the first payment is due six months after the purchase date. Libby's incremental borrowing rate is 8%. At what amount would the liability be reported on the balance sheet as of the purchase date, after the initial $5,000 payment was made? A. $45,000 B. $33,664 C. $38,664 D. $40,000