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Short Company purchased land by paying $24,000 cash on the purchase date and agreed to pay...

Short Company purchased land by paying $24,000 cash on the purchase date and agreed to pay $24,000 for each of the next nine years beginning one-year from the purchase date. Short's incremental borrowing rate is 12%. The land reported on the balance sheet is closest to: (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided.)

$216,000.

$77,892.

$240,000.

$151,878.

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Answer #1

Present value P+Px[1-(1:(1+r)^(n-1)]=r Here, 12% 10 1 1 Interest rate per annum 2 Number of years 3 Number of compoundings pe

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