Mason Co. issued $680,000 of four-year, 12% bonds with interest payable semiannually, at a market (effective) interest rate of 11%.

Determine the present value of the bonds payable, using the present value tables in Exhibit 4 and Exhibit 5. Round to the nearest dollar?

EXHIBIT 4 Present Value of $1 at Compound Interest ANI-No 10% 0.90909 0.82645 13% 11% 0.90090 0.81162 Periods 4% 0.96154 0.956940 0.92456 0.915730 5% 0.95238 0.90703 51/2% 0.94787 0.89845 6% 0.94340 0.89000 7% 0.93458 0.87344 12% 0.89286 0.79719 0.88496 0.78315 0.88900 0.876300 0.86384 0.85161 0.83962 0.81630 0.75 131 0.73119 0.71178 0.69305 0.61332 0.54276 0.79031 0.767900 0.74622 0.72525 0.70496 0.66634 0.56447 0.53464 0.50663 0.48032 0.42506 0.37616 0.33288 0.29459 0.80722 0.76513 0.76290 0.71299 0.68301 0.62092 4 0.85480 0.838560 0.82193 0.802450 0.79209 0.74726 0.65873 0.59345 0.63552 0.56743 0.82270 0.78353 6 0.75992 0.734830 0.73069 0.703190 0.70259 0.672900 0.67556 0.643930 0.71068 0.67684 0.64461 0.61391 0.68744 0.65160 0.61763 0.58543 0.66506 0.62741 0.59190 0.55839 0.62275 0.58201 0.54393 0.50835 0.51316 0.46651 0.42410 0.38554 0.48166 0.43393 0.39092 0.35218 0.45235 0.40388 0.36061 0.32197 8