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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

  • $707,400

  • $715,000

  • $757,600

  • $743,400

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