answer B

On January 1, Sheridan Corporation issues a $120,000,10-year non-interest-bearing note to Camden Production for new machinery. The market interest rate is 12% and Camden is to pay $12,000 as an instalments at the end of each year. Fair value for a purchase of the new machinery in cash is not available from the supplier at this time. Click here to view Table A.4. PRESENT VALUE OF AN ORDINARY ANNUITY OF 1 (a) Your answer has been saved, See score details after the due date. Calculate the purchase price using any of the three methods (tables, financial calculator, or Excel). (Round foctor values to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, e. 5. 5.275.) Purchase price Prepare the journal entry to record the machinery purchase. (Credit account titles are automatically indented when the omount is entered. Do not indent manually, If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List debit entry before credit entry. Round present value factor calculations to 5 decimal ploces, eg. 1.25124 and the final answer fo 0 decimal places eg. 58.971