Solution
Accounts title and explanation | Debit | credit |
Trucks | $ 56,914 | |
Discount on notes payable | $ 29,486 | |
Notes payable | $ 86,400 | |
(To record issue of notes payable) |
Value of truck= 86400 x PV factor @11% at year 4 end
Value of truck = 86400 x 0.65873= $56914
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