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Roseland Company purchased merchandise from Royal Corp. on September 30, year 1. Payment was made in the form of a noninterest-bearing note requiring Roseland to

Roseland Company purchased merchandise from Royal Corp. on September 30, year 1. Payment was made in the form of a noninterest-bearing note requiring Roseland to make six annual payments of $4,400 on each September 30, beginning on September 30, year 4.

Required:

Calculate the amount at which Roseland should record the note payable and corresponding purchases on September 30, year 1, assuming that an interest rate of 12% properly reflects the time value of money in this situation.

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