Multiple Choice
On October 1,2016,Justine Company purchased equipment from Napa Inc.in exchange for a noninterest-bearing note payable in five equal annual payments of $500,000,beginning Oct 1,2017.Similar borrowings have carried an 11% interest rate.The equipment would be recorded at:
A) $2,500,000.
B) $2,225,000.
C) $1,847,950.
D) $2,115,270.
Correct Answer:
Verified
Correct Answer:
Verified
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