Required information [The following information applies to the questions displayed below] On January 1, Boston Company completed the following transactions (use a 7% annual interest rate for all transactions): ( FV of \$1. PV of \$1. EVA of \$1, and PVA of \$1) Note: Use appropriate factor(s) from the tables provided. a. Promised to pay a fixed amount of $6,400 at the end of each year for seven years and a one-time payment of $115,800 at the end of the 7 th year. b. Established a plant remodeling fund of $490,600 to be available at the end of Year 8 . A single sum that will grow to $490,600 will be deposited on January 1 of this year. c. Agreed to pay a severance package to a discharged employee. The company will pay $75,400 at the end of the first year, $112,900 at the end of the second year, and $150,400 at the end of the third year. d. Purchased a $172,000 machine on January 1 of this year for $34,400 cash. A five-year note is signed for the balance. The note will be paid in five equal year-end payments starting on December 31 of this yeac. Required: 1. In transaction (a), determine the present value of the debt. Note: Round your intermediate caiculations and final answer to nearest whole dollar. Required information [The following information applies to the questions displayed below] On January 1, Boston Company completed the following transactions (use a 7% annual interest rate for all transactions): ( EV of $1, PV of $1, EVA of $1, and PVA of $1) Note: Use appropriate factor(s) from the tables provided. a. Promised to pay a fixed amount of $6,400 at the end of each year for seven years and a one-time payment of $115,800 at the end of the 7 th year. b. Established a plant remodeling fund of $490,600 to be available at the end of Year 8 . A single sum that will grow to $490,600 will be deposited on January 1 of this year. c. Agreed to pay a severance package to a discharged employee. The company will pay $75,400 at the end of the first year, $112,900 at the end of the second year, and $150,400 at the end of the third year. d. Purchased a $172,000 machine on January 1 of this year for $34,400 cash. A five-year note is signed for the balance. The note will be paid in five equal year-end payments starting on December 31 of this year. 2-a. In transaction (b), what single sum amount must the company deposit on January 1 of this year? 2-b. What is the total amount of interest revenue that will be earned? Required information [The following information applies to the questions displayed below.] On January 1, Boston Company completed the following transactions (use a 7% annual interest rate for all transactions): ( FV of \$1, PV of \$1, FVA of $1 and PVA of \$1) Note: Use appropriate factor(s) from the tables provided. a. Promised to pay a fixed amount of $6,400 at the end of each year for seven years and a one-time payment of $115,800 at the end of the 7 th year. b. Established a plant remodeling fund of $490,600 to be available at the end of Year 8 . A single sum that will grow to $490,600 will be deposited on January 1 of this year. c. Agreed to pay a severance package to a discharged employee. The company will pay $75,400 at the end of the first year, $112,900 at the end of the second year, and $150,400 at the end of the third year. d. Purchased a $172,000 machine on January 1 of this year for $34,400 cash. A five-year note is signed for the balance. The note will be paid in five equal year-end payments starting on December 31 of this year. 3. In transaction (c), determine the present value of this obligation. Note: Round your intermediate calculations and final answer to nearest whole dollar
