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charle [14.2K]
3 years ago
5

On July 1, 2021, Markwell Company acquired equipment. Markwell paid $175,000 in cash on July 1, 2021, and signed a $700,000 noni

nterest-bearing note for the remaining balance which is due on July 1, 2022. An interest rate of 5% reflects the time value of money for this type of loan agreement. (PV of $1, PVA of $1) (Use appropriate factor(s) from the tables provided.) For what amount will Markwell record the purchase of equipment? a) $834,048. b) $841,666. c) $741,666. d) $875,000.
Business
1 answer:
MAVERICK [17]3 years ago
8 0

Answer: b) $841,666.

Explanation:

Markwell will record the equipment at the present value of the amounts spent to purchase it.

Present value of the cash paid = $175,000

Present value of the noninterest-bearing note after a year = 700,000/(1 + 5%)

= $666,667

Total = 175,000 + 666,667

= $841,667

As per the options;

= $841,666

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The money left over the cost of making a product or providing a service
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If investors expect inflation to increase over the next 20 years and the maturity risk premium is expected to increase over the
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Explanation:

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Beyond-the-Sea Corporation and Homeport Company make a deal for Homeport's products, via e-records. Under the UETA, an e-record
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4 0
3 years ago
If the expected sales volume for the current period is 7,500 units, the desired ending inventory is 263 units, and the beginning
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Answer:

Total production for the current period is expected to be 7420 units.

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A company incurred the following costs associated with the purchase of a piece of land that it will use to re-build an office bu
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Cost of an item of property, plant and equipment comprises of purchase price and any cost directly attributable to bringing the asset to the location and condition for operation as intended by management.

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3 0
3 years ago
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