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On September 1, Year 1, Able Company purchased a building from Regal Corporation by paying $360,000 cash and issuing a one-year note payable for the
On September 1, Year 1, Able Company purchased a building from Regal Corporation by paying $360,000 cash and issuing a one-year note payable for the balance of the purchase price. Interest on the note is stated at an annual rate of 12% and is paid at maturity. In its December 31, Year 1, balance sheet, Able correctly presented the note and interest payable as follows:
Interest payable | $14,200 |
---|---|
Notes payable, 12%, due September 1, Year 2 | $355,000 |
What is the total cash (including interest) paid for the building purchased by Able?
Multiple Choice
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$707,400
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$715,000
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$757,600
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$743,400
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