Stone needs to accumulate sufficient funds to pay a $420,000 debt that comes due on December 31,2029 . The company will accumulate the funds by making five equal annual deposits to an account paying 8% interest compounded annually. Determine the required annual deposit if the first deposit is made on December 31,2024. Note: Round your final answers to nearest whole dollar amount. Stone Company is facing several decisions regarding investing and financing activities. Address each decision independently. 1. On June 30,2024 , the Stone Company purchased equipment from Paper Corporation. Stone agreed to pay $12,000 on the purchase date and the balance in six annual installments of $10,000 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? 2. Stone needs to accumulate sufficient funds to pay a $420,000 debt that comes due on December 31,2029 . The company will accumulate the funds by making five equal annual deposits to an account paying 8% interest compounded annually. Determine the required annual deposit if the first deposit is made on December 31, 2024. 3. On January 1,2024 , Stone leased an office building. Terms of the lease require Stone to make 20 annual lease payments of $122,000 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. On June 30,2024 , the Stone Company purchased equipment from Paper Corporation. Stone agreed to pay $12,000 on the purchase date and the balance in six annual installments of $10,000 on each June 30 beginning June 30,2025 . Assuming that an interest rate of 12% properly refiects 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. On January 1,2024 , Stone leased an office buliding. Terms of the lease require Stone to make 20 annual lease payments of 122,000 beginning on January 1,2024 . A 12% interest rate is implicit in the lease agreement. At what amount should Stone ecord the lease liability on January 1,2024 , before any lease payments are made? Vote: Round your final answers to nearest whole dollar amount
