Question
On December 31, 2018, Cumulus Corporation sold an old machine to Stratus Inc.Cumulus accepted a $62,000 note payable and cash down payment of $10,000.The note
On December 31, 2018, Cumulus Corporation sold an old machine to Stratus Inc.Cumulus accepted a $62,000 note payable and cash down payment of $10,000.The note payable is due December 31, 2022 with interest paid annually, beginning December 31, 2019, at a stated rate of 5%.The old machine had an original cost of $105,000 and accumulated depreciation of $45,600. The market rate on similar notes is 6%.
What is the carrying value of the notes receivable for Cumulus Corporation on December 31, 2019 after recording the interest payment (rounded to the nearest dollar)?
I am not sure what they are asking when they say "Carrying Value". I am assuming they are talking about the Machine but I am not sure. Can you help me?
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