Alden Trucking Company Is Replacing Part of Its Fleet of Trucks

Multiple Choice

Alden Trucking Company is replacing part of its fleet of trucks by purchasing them under a note agreement with Kenworthy on January 1,2019.Alden financed $37,908,000,and the note agreement will require $10 million in annual payments starting on December 31,2019 and continuing for a total of four more years (final payment December 31,2023) .Kenworthy will charge Alden Trucking Company the market interest rate of 10% compounded annually.
- On January 1,2019,Alden will record a note payable in the amount of:

A) $40,000,000
B) $37,908,000.
C) $41,698,000.
D) $50,000,000.