hnny Inc. purchased certain fixed assets under a deferredpayment contract on December 31, 2018. The agreement was to pay$20,000 at the time of purchase and $20,000 at the end of each ofthe next five years.

The fixed assets should be valued at:

a)The present value of a $20,000 ordinary annuity for 5years.

b)$120,000.

c)$120,000 less imputed interest.

d)$120,000 plus imputed interest.