Multiple Choice
On May 1, 2010, Mosier Company acquired a new machine by agreeing to pay five equal annual payments of $20, 000, beginning on May 1, 2010.Assuming an interest rate of 14% compounded annually, Mosier should record the acquisition cost of the machine on May 1, 2010, at
A) $ 68, 661.62
B) $ 78, 274.24
C) $ 87, 719.25
D) $100, 000.00
Correct Answer:
Verified
Correct Answer:
Verified
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