Question
On July 1, 2021, Pancho Villa Enterprises (PVE) acquired equipment. PVE paid $172,500 in cash on July 1, 2021, and signed a $690,000 noninterest-bearing note
On July 1, 2021, Pancho Villa Enterprises (PVE) acquired equipment. PVE paid $172,500 in cash on July 1, 2021, and signed a $690,000 noninterest-bearing note for the remaining balance which is due on July 1, 2022. An interest rate of 7% 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 PVE record the purchase of equipment?
Multiple Choice
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$862,500.
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$809,742.
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$717,360.
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$817,360.
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Accounting Systems
Authors: Ronald W. Hilton, David E. Platt
10th Edition
1308172486, 978-1308172484
