ent CALCULATUN Multiple Choice Question 110 Oricle Company has a machine that cost $7200. It is to be leased for 20 years with rent received at the beginning of each year. Lane wants a Periods 19 20 21 Present Value of Ordinary Annuity 7.83929 7.96333 8.07507 $89304 $91844 $90414 $81454 CPA Question 01 Which of the following transactions would require the use of the present value of an annuity due concept in order to calculate the present value of the asset obtained or liability owed at the date of incurrence? 0 A 10-year 8% bond is issued on January 2 with interest payable semiannually on July 1 and January 1 yielding 796. O A capital lease is entered into with the initial lease payment due upon the signing of the lease agreement. A 10-year 8% bond is issued on January 2 with interest payable semiannually on July 1 and January 1 yielding 9%. O A capital lease is entered into with the intial lease payment due 1 month subsequent to the signing of the lease agreement. Click if you would like to Show work for this question: Open Show Work CPA Question 02 On January1 of the current year, Lean Co. made an investment of $10,000. The following is the present value of $1.00 discounted at a 10% interest rate - Periods Discounted at 10% 909 826 751 What amount of cash will Lean accumulate in two years? O $27,002 O $16,250 $12,000 O $12,107 Given below are the future value factors for 1 at 10% for one to five periods. Interest is compounded annually at 10%. Futurevalueoriat 10% 1.080 1.166 1.260 1.360 1.469 Periods What amount will be in a bank account three years from now if $12200 is invested each year for four years with the first investment to be made today? ($12200 x 1.331)+ ($12200 x 1.210) ($12200 x 1.100)+$12200 $12200 1.464 4 ($12200 x 1.100) + ($12200 x 1.210) + ($12200 1.331) + ($12200 1.464) $12200 1.100 x 4 ion