Rusty Corporation Purchased a Rust-Inhibiting Machine by Paying $50,000 Cash

Multiple Choice

Rusty Corporation purchased a rust-inhibiting machine by paying $50,000 cash on the purchase date and agreeing to pay $10,000 every three months during the next two years; the first payment is due three months after the purchase date.Rusty's incremental borrowing rate is 8%.At what amount would the liability be reported at on the balance sheet as of the purchase date,after the initial $50,000 payment was made?

A) $123,255
B) $130,000
C) $80,000
D) $73,255