Question
Pearl Ltd, an equipment manufacturer, sold and delivered a piece of equipment to a buyer for $120,000, with 50% payable in one year and
Pearl Ltd, an equipment manufacturer, sold and delivered a piece of equipment to a buyer for $120,000, with 50% payable in one year and the remaining 50% payable in two years from the date of sale. Pearl estimates that the interest rate for a similar financing arrangement would be 12% Calculate the amount of revenue that Pearl should recognize on the date of sale. (Round discount factor to 5 decimals and final answer to 2 decimal places, eg. 5,275.25) Click here to view the factor table PRESENT VALUE OF 1
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