Spring's specifications and it does not have a market outside of this transaction.

$($Click the icon to view financing information.$)$

Read the requirements.

Future Value of $$1$ table Future Value of an Ordinary Annuity table Future Value of an Annuity Due table

Present Value of $$1$ table Present Value of an Ordinary Annuity table Present Value of an Annuity Due table

Requirement a$.$ Determine the proper valuation of the machine. $($Round your answer to the nearest dollar.$)$

The proper valuation of the machine is

Requirements

a$.$ Determine the proper valuation of the machine.

b$.$ Prepare the journal entry to record the acquisition.

More info

To finance this purchase, the manufacturer provided Spring credit and asked the

company to issue a $7-$year, $$840,000$ non$-$interest$-$bearing note payable. If Spring

borrowed the funds from a commercial bank, it would have incurred a $5\%$ interest

rate.