Polo Publishers Purchased a Multi-Color Offset Press with Terms of $50,000

Multiple Choice

Polo Publishers purchased a multi-color offset press with terms of $50,000 down and a noninterest-bearing note requiring payment of $20,000 at the end of each year for five years. The interest rate implicit in the purchase contract is 11%. Polo would record the asset at:

A) $109,618.
B) $123,918.
C) $130,000.
D) $169,560.$50,000 + ($20,000 x 3.69590) = $123,918 *PVA of $1: n=5; i=11%