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Rae Company purchased a new vehicle by paying $11,500 cash on the purchase date and agreeing to pay $4,500 every three months during the next

Rae Company purchased a new vehicle by paying $11,500 cash on the purchase date and agreeing to pay $4,500 every three months during the next five years. The first payment is due three months after the purchase date. Rae's incremental borrowing rate is 4%. The liability reported on the balance sheet as of the purchase date, after the initial $11,500 payment was made, is closest to

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