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On August 1, 2010, Heinz Corporation purchased a new machine on a deferred payment basis. A down payment of $30,000 was made and 4 annual
On August 1, 2010, Heinz Corporation purchased a new machine on a deferred payment basis. A down payment of $30,000 was made and 4 annual installments of $25,000 each are to be made beginning on August 1, 2011. Heinz incurred and paid installation costs amounting to $500. Assuming an annual interest rate of 8%, the amount to be capitalized as the cost of the machine is
$130,500.
$112,803.
$113,303.
$82,803.
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