Libby Company purchased equipment by paying $5,500 cash on the purchase date and agreeing to pay $5,500 every six months during the next four years. The first payment is due six months after the purchase date. Libby's incremental borrowing rate is 6%. The liability reported on the balance sheet as of the purchase date, after the initial $5,500 payment was made, is closest to: (FV of $1, PV of $1, FVA of $1, and PVA of $1 ) Note: Use the appropriate factor(s) from the tables provided. Multiple Choice $38,608. $44,000 $49,500. $44,108. Libby Company purchased equipment by paying $5,500 cash on the purchase date and agreeing to pay $5,500 every six months during the next four years. The first payment is due six months after the purchase date. Libby's incremental borrowing rate is 6%. The liability reported on the balance sheet as of the purchase date, after the initial $5,500 payment was made, is closest to: (FV of $1, PV of $1, FVA of $1, and PVA of $1 ) Note: Use the appropriate factor(s) from the tables provided. Multiple Choice $38,608. $44,000 $49,500. $44,108