Tech Magic Purchased a New Computer System and in Return

Multiple Choice

Tech Magic purchased a new computer system and in return signed a three-year $30,000 non- interest-bearing note payable. An investigation by the company's accountant revealed that similar notes have market rates of interest around 8%. At what amount should the note payable be initially recorded on Chi's financial statements?

A) $25,771
B) $30,000
C) $23,815
D) $25,770