On December 31, 2020, ABC Co. purchased a machine under a deferred payment contract where it is required to make 8 annual payments of P140,000 beginning December 31, 2021. IF interest rate is 8%, the purchase price of the machine must be closest to a.P1,389,190 b.P1,120,000 c. P 868,900 d. P804,530
On December 31, 2020, ABC Co. purchased a machine under a deferred payment contract where it is required to make 8 annual payments of P140,000 beginning December 31, 2021. IF interest rate is 8%, the purchase price of the machine must be closest to a.P1,389,190 b.P1,120,000 c. P 868,900 d. P804,530
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
ChapterM: Time Value Of Money Module
Section: Chapter Questions
Problem 5MC: On May 1, 2019, a company purchased a new machine that it does not have to pay for until May 1,...
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On December 31, 2020, ABC Co. purchased a machine under a deferred payment contract where it is required to make 8 annual payments of P140,000 beginning December 31, 2021. IF interest rate is 8%, the purchase price of the machine must be closest to
a.P1,389,190
b.P1,120,000
c. P 868,900
d. P804,530
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