Nimbus Inc

Multiple Choice

Nimbus Inc. purchased certain plant assets under a deferred payment contract. The agreement was to pay $30,000 per year for ten years. The plant assets should be valued at

A) $300,000.
B) $300,000 plus imputed interest.
C) present value of $30,000 annuity for ten years at an imputed interest rate.
D) future value of $30,000 annuity for ten years at an imputed interest rate.