Journal entries ( especially for number 2 explain)

1.

Truck #1 has a list price of $22,350 and is acquired for a cash payment of $20,711.

2.

Truck #2 has a list price of $23,840 and is acquired for a down payment of $2,980 cash and a zero-interest-bearing note with a face amount of $20,860. The note is due April 1, 2018. Culver would normally have to pay interest at a rate of 10% for such a borrowing, and the dealership has an incremental borrowing rate of 8%.

3.

Truck #3 has a list price of $23,840. It is acquired in exchange for a computer system that Culver carries in inventory. The computer system cost $17,880 and is normally sold by Culver for $22,648. Culver uses a perpetual inventory system.

4.

Truck #4 has a list price of $20,860. It is acquired in exchange for 990 shares of common stock in Culver Corporation. The stock has a par value per share of $10 and a market price of $13 per share

2.		Trucks	SOLUTION =	PV of $20,860 @ 10% for 1 year	=
				$20,860 0.90909	=	$18,964
				$18,964 + $2,980	=	$21,944

how do u get .90909