Details of this Paper

On January 1, 2010, the company purchased machinery by

Description

solution


Question

On January 1, 2010, the company purchased machinery by paying $100,000 down and signing a note to pay $400,000 in three years on January 1, 2010. The effective interest rate for the note is 7%. The machinery is estimated to have a 10-year life and no salvage value.;P1. Determine the present value of the note and the purchase price of the equipment.;P2. Complete the following amortization schedule for the note.;Amortized Note Carrying;Date Interest Expense Discount Amount;01/01/10;12/31/11;12/31/12;12/31/13

 

Paper#33370 | Written in 18-Jul-2015

Price : $25
SiteLock