Answer:
Find the multiple choices below:
A) 133,900
B) 82,400
C) 123,803
D) 79,323
The correct option is D,79,323
Explanation:
The liability to be reported can be ascertained by using the pv formula in excel.
The pv implies present value of future cash flows of $11,300 every three months.
The applicable formula is :=-pv(rate,nper,pmt,fv)
the rate is quarterly rate of 12%/4=3%
nper is the number of times the $11,300 would be paid 2*4=8 times
pmt is the quarterly payment of $11,300
fv is the future value which is unknown and taken as zero
=-pv(3%,8,-11,300,0)
pv=$79,322.52
This is the liability that would be shown on the balance sheet after the initial payment of $56,500
