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%.At what amount would the vehicle be reported at on the balance sheet as of the purchase date?

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