On July 1, 2021, Markwell Company acquired equipment. Markwell paid $177,500 in cash on July 1, 2021, and signed a $710,000 noninterest-bearing note for the remaining balance which is due on July 1, 2022. An interest rate of 6% reflects the time value of money for this type of loan agreement. (PV of $1, PVA of $1) (Use appropriate factor(s) from the tables provided.) For what amount will Markwell record the purchase of equipment?

Multiple Choice

• $847,314.

• $747,314.

• $887,500.

• $839,696.