Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Determine the combined present value as of December 31, 2021, of the following four payments to be received at the end of each of the

image text in transcribed
image text in transcribed
image text in transcribed
Determine the combined present value as of December 31, 2021, of the following four payments to be received at the end of each of the designated years, assuming an annual interest rate of 8%. (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your final answers to nearest whole dollar amount.) Payment $ 7,500 8,250 10,000 11,750 Year Received 2022 2023 2025 2027 i = n Payment Present Value Year Received 2022 2023 2025 $ 8% 8% 8% 7,500 8,250 10,000 11,750 8% 2027 Total hos Determine the present value of the following single amounts (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your final answers to nearest whole dollar amount.): Present Value 1. 17 Future Amount $ 36,000 $ 30,000 $ 41,000 $ 56,000 15 7% 9% 12% 11% 15 4 $ 9 Lincoln Company purchased merchandise from Grandville Corp. on September 30, 2021. Payment was made in the form of a noninterest-bearing note requiring Lincoln to make six annual payments of $6,000 on each September 30, beginning on September 30, 2024. (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your final answer to nearest whole dollar amount.) Required: Calculate the amount at which Lincoln should record the note payable and corresponding purchases on September 30, 2021, assuming that an interest rate of 12% properly reflects the time value of money in this situation. Amount recorded

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Oil And Gas Accounting

Authors: Charlotte Wright

6th Edition

9781593703639

More Books

Students also viewed these Accounting questions

Question

=+2. What are the organization's relationship goals on this issue?

Answered: 1 week ago

Question

consider your role and influences as a researcher;

Answered: 1 week ago