P9-11 (Static) Computing Present Values LO9-7, 9-8

[The following information applies to the questions displayed below.]

On January 1, Boston Company completed the following transactions (use a 7% annual interest rate for all transactions): (FV of $1,PV of $1,FVA of $1, andPVA of $1)(Use the appropriate factor(s) from the tables provided.)

1. Promised to pay a fixed amount of $6,000 at the end of each year for seven years and a one-time payment of $115,000 at the end of the 7th year.
2. Established a plant remodeling fund of $490,000 to be available at the end of Year 8. A single sum that will grow to $490,000 will be deposited on January 1 of this year.
3. Agreed to pay a severance package to a discharged employee. The company will pay $75,000 at the end of the first year, $112,500 at the end of the second year, and $150,000 at the end of the third year.
4. Purchased a $170,000 machine on January 1 of this year for $34,000 cash. A five-year note is signed for the balance. The note will be paid in five equal year-end payments starting on December 31 of this year.