Present and future value tables of $1 at 11% are presented below

Accounting Aug 06, 2020

Present and future value tables of $1 at 11% are presented below.

PV of $1FV of $1PVA of $1FVA of $110.900901.110000.900901.000020.811621.232101.712522.110030.731191.367632.443713.342140.658731.518073.102454.709750.593451.685063.695906.227860.534641.870414.230547.9129

On October 1, 2018, Justine Company purchased equipment from Napa Inc. in exchange for a noninterest-bearing note payable in four equal annual payments of $510,000, beginning Oct 1, 2019. Similar borrowings have carried an 11% interest rate. The equipment would be recorded at:

Multiple Choice

$1,582,250.
$1,884,909.
$1,815,600.
$2,040,000.

Expert Solution

PVA=Annuity x PVA $1 at N=4

=510000 x 3.10245

=$1,582,249.5 or $1,582,250

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