Homework Answers
OPTION: $42076
EXPLANATION:
Amount to be recorded in books = down payment + present value of annual payment
= $10000 + $12000 x PVAF(6%,3)
= $10000 + ($12000 x 2.67301)
= $10000 + $32076.12
= 42,076
where,
PVAF(6%,3) = 2.67301
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