Question
On December 31, 2021 Carla Vista Company sold for $150800 an old machine having an original cost of $173500 and a book value of
On December 31, 2021 Carla Vista Company sold for $150800 an old machine having an original cost of $173500 and a book value of $122900. The terms of the sale were as follows: $27900 down payment $55800 payable on December 31 each of the next two years The agreement of sale made no mention of interest; however, 9% would be a fair rate for this type of transaction. What should be the amount of the notes receivable net of the unamortized discount on December 31, 2021 rounded to the nearest dollar? (The present value of an ordinary annuity of 1 at 9% for 2 years is 1.75911.) O $122900. O $126058. O $216195. O $98158.
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