On January 1, 20A, Goldstein Company purchased a machine. The seller agreed that a total of $9,000 would be paid over a three-year period--$3,000 per year at the end of 20A, 20B, and 20C. At the time the machine was purchased, the market rate of interest was 10%. The amount that should be debited to the asset account, Machinery, on the date of purchase is (round to the nearest dollar)

A. $9,000.
B. $9,948.
C. $7,461.
D. $9,016.

Ans: C. $7,461.

Business

You might also like to view...

In marketing, sales, cost, market share, and number of customers are variables measured on a ________ scale

A) nominal B) ordinal C) interval D) ratio

Business

If a DBMS enforces in the HAPPY INSURANCE database a DELETE RESTRICT option on the referential integrity constraint between AGENT and AGENT

i.e., circular referential integrity constraint for table AGENT) in the HAPPY INSURANCE database, and a DELETE CASCADE between AGENT and CLIENT, the first record in the table AGENT can be deleted.

Business