Question
Present and future value tables of $1 at 11% are presented below. On October 1, 2018, Justine Company purchased equipment from Napa Inc. in exchange
Present and future value tables of $1 at 11% are presented below.
On October 1, 2018, Justine Company purchased equipment from Napa Inc. in exchange for a noninterest-bearing note payable in two equal annual payments of $610,000, beginning Oct 1, 2019. Similar borrowings have carried an 11% interest rate. The equipment would be recorded at:
A. $1,220,000 B. $1,085,800 C. $1,044,637 D. $1,490,663
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Financial Accounting
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, J. Mather
8th Edition
0470929383, 978-0470929384
