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Finger [1]
3 years ago
10

Perdue Company has purchased equipment that requires annual payments of $30,000 to be paid at the end of each of the next 6 year

s. The appropriate discount rate is 12%. What amount will be used to record the equipment?a. $165,772b. $180,000c. $115,650d. $123,342
Business
1 answer:
Charra [1.4K]3 years ago
6 0

The answer will be $123,342

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Since dividends are paid using money that proceeds from retained earnings, the balance of the retained earnings account = accumulated retained earnings - accumulated dividends = $35,000 - $12,000 = $23,000

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