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Your company has negotiated the purchase of some land, a building, equipment, and vehicles for $2,000,000. The appraised values of these assets is as follows:
Your company has negotiated the purchase of some land, a building, equipment, and vehicles for $2,000,000. The appraised values of these assets is as follows: Land Building Equipment Vehicles total 1,000,000 550,000 630,000 120,000 2,300,000 There are two choices to finance the acquisition of these assets: one, would be to obtain an installment loan from City National Bank at 9.0% for 6 years (compounded annually). The other choice would be to issue non-cumulative, $125 par value, 10% preferred stock. Required: Compute the values of the acquired assets based on the appraised values and prepare the resulting journal entry (5 points). Compute the payment on the loan and prepare the repayment schedule (10 points) Prepare a written analysis of the two financing options (at least one page), discussing the advantages (5 points) and disadvantages (5 points) of each (for a total of 20 points). Finally, provide your recommendation (5 points), based on the advantages and disadvantages mentioned in your analysis. Be specific, and be sure to show all work
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