On January 1, 2020, ABC purchased a machine by issuing a $150,000 non-interest-bearing note with payments...

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On January 1, 2020, ABC purchased a machine by issuing a $150,000 non-interest-bearing note with payments of principal and interest to be paid annually at the end of each year for the next 5 years. The first payment is due on December 31, 2020. In recent transactions ABC paid 7% interest. The present value of one at 7% for 5 periods is .713; the present value of an annuity at 7% for 5 periods is 4.10. ABC recorded the machine with the following journal entry: Equipment 150,000 Note Payable 150,000 ABC depreciated the machine using the original cost recorded on their books and applied the straight-line method assuming a 10-year life and no salvage. Determine the effect of these errors on the Book Value of the machine as of December 31, 2021. O Over by $24,300 O Over by $21,600 O Over by $18,390 O Over by $5,400 On January 1, 2020, ABC purchased a machine by issuing a $150,000 non-interest-bearing note with payments of principal and interest to be paid annually at the end of each year for the next 5 years. The first payment is due on December 31, 2020. In recent transactions ABC paid 7% interest. The present value of one at 7% for 5 periods is .713; the present value of an annuity at 7% for 5 periods is 4.10. ABC recorded the machine with the following journal entry: Equipment 150,000 Note Payable 150,000 ABC depreciated the machine using the original cost recorded on their books and applied the straight-line method assuming a 10-year life and no salvage. Determine the effect of these errors on the Book Value of the machine as of December 31, 2021. O Over by $24,300 O Over by $21,600 O Over by $18,390 O Over by $5,400