Question
Present and future value tables of $1 at 11% are presented below. PV of $1 FV of $1 PVA of $1 FVA of $1 1
Present and future value tables of $1 at 11% are presented below.
| PV of $1 | FV of $1 | PVA of $1 | FVA of $1 | |
| 1 | 0.90090 | 1.11000 | 0.90090 | 1.0000 |
| 2 | 0.81162 | 1.23210 | 1.71252 | 2.1100 |
| 3 | 0.73119 | 1.36763 | 2.44371 | 3.3421 |
| 4 | 0.65873 | 1.51807 | 3.10245 | 4.7097 |
| 5 | 0.59345 | 1.68506 | 3.69590 | 6.2278 |
| 6 | 0.53464 | 1.87041 | 4.23054 | 7.9129 |
On October 1, 2021, Justine Company purchased equipment from Napa Inc. in exchange for a noninterest-bearing note payable in six equal annual payments of $560,000, beginning Oct 1, 2022. Similar borrowings have carried an 11% interest rate. The equipment would be recorded at:
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Advanced Financial Accounting
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
10th edition
78025621, 978-0078025624
