Points: /105 Multiple Choice (3 points each) 1. Chance Corp, is purchasing new equipment with a cash cost of $250,000 for an assembly line. The manufacturer has offered to accept $57,400 payment at the end of each of the next six years. How much interest will Chance Corp. pay over the term of the loan? A)$57,400. B) $307,400. C)$94,400. D)$250,000. 2. Assuming the market interest rate is 10% per annum, how much would Green Co. record as a note payable if the terms of the loan with a bank are that it would have to make one $80,000 payment in two years? (The present value of S1 for two periods at 10% is 0.82645) A) $72,563. B)$72,727. C)$80,000. D) $66,116. 3 An amount is deposited for eight years at 8% l compounding occurs quarterly, then the table value is found at A) 4% for 16 periods. B) 8% for eight periods. C) D) 2% for eight periods. 2% for 32 periods. 4. A plant site donated by a township to a manufacturer that plans to open a new factory should be recorded on the manufacturer's books at A) the nominal cost of taking title to it. B) its fair value. C) D) one dollar (since the site cost nothing but should be included in the balance sheet). the value assigned to it by the company's directors. 5. Toll Construction sold S80.000, of goods and accepted the customer's S80,000 10%, 1- year note receivable in exchange. Assuming 10% approximates the market rate of return, what would be the debit in this journal entry to record the sale? A) Debit Notes Receivable for $80,000. B) No journal entry until cash is collected. C) Debit Notes Receivable for $72,000. D) Debit Accounts Receivable for $80,000. Version 2 Page 1