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On December 30, 2020, Sheffield Corp. purchased a machine from Ivanhoe Company in exchange for a zero-inter bearing note requiring eight payments of $234000. The
On December 30, 2020, Sheffield Corp. purchased a machine from Ivanhoe Company in exchange for a zero-inter bearing note requiring eight payments of $234000. The first payment was made on December 30, 2020, and the others are due annually on December 30. At date of issuance, the prevailing rate of interest for this type of note w 12%. Present value factors are as follows: Period 7 Present Value of Ordinary Annuity of 1 at 12% 4.564 Present Value of Annuity Due of 1 at 12% 5.111 8 4.968 5.564 On Sheffield's December 31, 2020 balance sheet, the net note payable to Ivanhoe is O $1301976. O $1186628. O $1162512. $1067976
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