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Polo Publishers purchased a multi-color offset press with terms of $65,000 down and a noninterest-bearing note requiring payment of $40,000 at the end of each
Polo Publishers purchased a multi-color offset press with terms of $65,000 down and a noninterest-bearing note requiring payment of $40,000 at the end of each year for five years. The interest rate implicit in the purchase contract is 11%. Polo would record the asset at: Multiple Choice $147,836. $240,234. $105,000. $212,836.
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