1. On January 1, 20x1, SQUAMOUS SCALY Co. purchased furniture with an installment price of 520,000 and a cash price equivalent of 400,000 by paying 40,000 down payment and issuing a one-year noninterest-bearing note of 120,000 payable in equal semi-annual installments on July 1 and December 31, 20x1. How much is the initial cost of the furniture?
2. On January 1, 20x1, REEDY SLENDER Co. purchased fixtures with an installment price of 520,000 by paying 40,000 down payment and issuing a three-year noninterest bearing note of 480,000 payable in three equal annual installments starting December 31, 20x1. The prevailing rate for the note as of January 1, 20x1 is 12%. How much is the initial cost of the fixtures?
3. On January 1, 20x1 ABC Co. acquired a building for 380,000, including 20,000 non-refundable purchase taxes. The purchase agreement provided for payment to be made in full on December 31, 20x1. Legal fees of 8,000 were incurred in acquiring the building and paid on January 1, 20x1. An appropriate discount rate is 10%. How much is the initial cost of the building?
4. BAWDY INDECENT Co. acquired an oil rig for 400,000,000. Installation and other necessary costs in bringing the equipment to its intended condition for use totaled 80,000,000. BAWDY is required by law to dismantle the equipment and restore the site where it is installed after 20 years. The estimated decommissioning and restoration costs are 40,000,000. The imputed rate of interest is 12%. How much is the initial cost of the equipment?