Stone Company is facing several decisions regarding investing and financing activities. Address each decision.independently.

On June $30,2024,$ the Stone Company purchased equipment from Paper Corporation. Stone agreed to pay $$25,000$ on the purchase date and the balance in five annual installments of $$8,000$ on each June $30$ beginning June $30,2025.$ Assuming that an interest rate of $12\%$ properly reflects the time value of money in this situation, at what amount should Stone value the equipment?

Stone needs to accumulate sufficient funds to pay a $$550,000$ debt that comes due on December $31,2029.$ The company will accumulate the funds by making five equal annual deposits to an account paying $9\%$ interest compounded annually. Determine the required annual deposit if the first deposit is made on December $31,2024.$

On January $1,2024,$ Stone leased an office building. Terms of the lease require Stone to make $15$ annual lease payments of $$135,000$ beginning on January $1,2024.$ A $12\%$ interest rate is implicit in the lease agreement. At what amount should Stone record the lease liability on January $1,2024,$ before any lease payments are made?

Note: For all requirements, Use tables, Excel, or a financial calculator. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$

Complete this question by entering your answers in the tabs below.

Required $1$

Required $2$

Required $3$

On June $30,2024,$ the Stone Company purchased equipment from Paper Corporation. Stone agreed to pay $$25,000$ on the purchase date and the balance in five annual installments of $$8,000$ on each June $30$ beginning June $30,2025.$ Assuming that an interest rate of $12\%$ properly reflects the time value of money in this situation, at what amount should Stone value the equipment?

Note: Round your final answers to nearest whole dollar amount.

Show less A

Time values are based on:

$\backslash$table$[[2,,],[,,],[$Cash Flow,Amount,Present Value$],[$Installments$],[$Down Payment,,$],[$Value of the equipment,$]]$