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please solve 3 and 4. on 3, please IGNORE the note payable and interest is sentence Problem 38 This is data from the Marjean Company

please solve 3 and 4. on 3, please IGNORE the note payable and interest is sentence image text in transcribed
Problem 38 This is data from the Marjean Company Accounts Receivable $100,000 Accounts Payable 30,000 Inventory 80,000 Note Payable 150,000 Fixed Assets $600,000 Owners' Equity 400,000 Accum Deprec 200 000 400,000 Burden Co will buy Marjean Company for $1,600,000. They estimate the Accounts Receivable are worth $ 96.000, the Inventory is worth $90,000 and the Fixed Assets are worth $800,000 The Note Payable is interest only at 10% with the principal due 5 years from today. Current interest is 12%. Everything else is worth its book value. Prepare the journal entry for the purchase on Burden Co.'s books. Problem 4 Baker Company needs to decide whether to buy or lease office equipment Baker can buy the office equipment for $250,000 today, which would require that they borrow the funds from the bank. The bank will charge them 8% and require equal monthly payments over 4 years. They also have the option of leasing the office equipment for either 3 years or 5 years. If they choose to lease for 3 years, they will have to put $10,000 down today and make monthly lease payments of $7.500 and they can purchase the office equipment after the last payment for $5,000. If they opt for the 5-year lease, they need to put $10,000 down today and make monthly payments of $5,000 and they can purchase the office equipment after the last payment for $3,000. Which option is best? Explain with numerical analysis

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