Short Company Purchased Land by Paying $10,000 Cash on the Purchase

Multiple Choice

Short Company purchased land by paying $10,000 cash on the purchase date and agreeing to pay $10,000 for each of the next ten years beginning one-year from the purchase date.Short's incremental borrowing rate is 10%.(FV of $1,PV of $1,FVA of $1,and PVA of $1) (Use the appropriate factor(s) from the tables provided. )
- On the balance sheet as of the purchase date,after the initial $10,000 payment was made,the liability reported is closest to:

A) $100,000.
B) $38,550.
C) $61,446.
D) $71,446.