On June 30, 2016, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $24,000 on the purchase date and the balance in six annual installments of $7,000 on each June 30 beginning June 30, 2017. Assuming that an interest rate of 10% properly reflects the time value of money in this situation, at what amount should Johnstone value the equipment?

Johnstone needs to accumulate sufficient funds to pay a $540,000 debt that comes due on December 31, 2021. The company will accumulate the funds by making five equal annual deposits to an account paying 6% interest compounded annually. Determine the required annual deposit if the first deposit is made on December 31, 2016.

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	On January 1, 2016, Johnstone leased an office building. Terms of the lease require Johnstone to make 15 annual lease payments of $134,000 beginning on January 1, 2016. A 10% interest rate is implicit in the lease agreement. At what amount should Johnstone record the lease liability on January 1, 2016, before any lease payments are made?