Metals, Inc. purchased a rust-inhibiting machine from the manufacturer by paying $50,000 cash on the purchase date and agreeing to pay $10,000 every three months during the next two years beginning three months after the purchase date. The market interest rate for this type of arrangement is 8%. Under GAAP, Metals will record this liability as the present value of all the cash flows in the arrangement, discounted at the effective market interest rate.

Additional information:

Additional information:

PV of $1

PVA of $1

n / i

2%

8%

2%

8%

2

.96117

.85734

1.94156

1.78326

8

.85349

.54027

7.32548

5.74664

Metals. Inc. purchased a rustinhibiting; machine from the manufacturer by paying $5D cash on the purchase date and agreeing to payr $1U, every three months during the next two years beginning three months after the purchase date. The market interest rate for this type of arrangement is 8%. Under EMF, Metals will record this liability as the present yalue of all the cash flows in the arrangement, discounted at the effective market interest rate. Additional information: I W of $1 I WA of $1 3611? .85?34 I 1.94156 1.?3326 ' .8534? .| 132548 5.14654 II."'v.I"l'|at value should Metals, Inc. record for the liability {and the machine] on the purchase date? {Round to nearest dolla r.}| {3' $123,255 CI $130,000 D Home D snass