Rae Company Purchased a New Vehicle by Paying $10,000 Cash

Multiple Choice

Rae Company purchased a new vehicle by paying $10,000 cash on the purchase date and agreeing to pay $3,000 every three months during the next five years.The first payment is due three months after the purchase date.Rae's incremental borrowing rate is 12%.(FV of $1,PV of $1,FVA of $1,and PVA of $1) (Use the appropriate factor(s) from the tables provided. )
- The liability reported on the balance sheet as of the purchase date,after the initial $10,000 payment was made,is closest to:

A) $44,632.
B) $50,000.
C) $54,633.
D) $60,000.