Shamrock Corporation purchased a special tractor on December 31, 2020. The purchase agreement stipulated that Shamrock...
Shamrock Corporation purchased a special tractor on December 31, 2020. The purchase agreement stipulated that Shamrock should pay $18,790 at the time of purchase and $5,200 at the end of each of the next 8 years. The tractor should be recorded on December 31, 2020, at what amount, assuming an appropriate interest rate of 12%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Cost of tractor to be recorded $enter cost of tractor to be recorded in dollars
Homework Answers
| Annual payments | 5200 | |
| X PV factor 12% | 4.96764 | =(1-(1.12)^-8)/0.12 |
| Present value of Annual payments | 25832 | |
| Amount paid at the time of purchase | 18790 | |
| Present value of Annual payments | 25832 | |
| Cost of tractor to be recorded | 44622 |
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Shamrock Corporation purchased a special tractor on December 31,
2020. The purchase agreement stipulated that Shamrock...
* Your answer is incorrect. Try again. Pina Corporation purchased a special tractor on December 31,...
* Your answer is incorrect. Try again. Pina Corporation purchased a special tractor on December 31, 2020. The purchase agreement stipulated that Pina should pay $21,610 at the time of purchase and $4,790 at the end of each of the next 8 years. The tractor should be recorded on December 31, 2020, at what amount, assuming an appropriate interest rate of 12%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to o decimal places, e.g. 458,581.)...
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* Your answer is incorrect. Try again. Pina Corporation purchased a special tractor on December 31, 2020. The purchase agreement stipulated that Pina should pay $21,610 at the time of purchase and $4,790 at the end of each of the next 8 years. The tractor should be recorded on December 31, 2020, at what amount, assuming an appropriate interest rate of 12%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to o decimal places, e.g. 458,581.)...
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