! Required information [The following information applies to the questions displayed below] On January 1, Boston Company completed the following transactions (use a 7% annual interest rate for all transactions): ( FV of $1, PV of $1, FVA of $1, and PVA of $1) Note: Use appropriate factor(s) from the tables provided. a. Promised to pay a fixed amount of $6,900 at the end of each year for eight years and a one-time payment of $116,800 at the end of the 8th year. b. Established a plant remodeling fund of $491,350 to be available at the end of Year 9. A single sum that will grow to $491,350 will be deposited on January 1 of this year. c. Agreed to pay a severance package to a discharged employee. The company will pay $75,900 at the end of the first year, $113,400 at the end of the second year, and $150,900 at the end of the third year. d. Purchased a $174,500 machine on January 1 of this year for $34,900 cash. A five-year note is signed for the balance. The note will be paid in five equal year-end payments starting on December 31 of this year. 3. In transaction (c), determine the present value of this obligation. Note: Round your intermediate calculations and final answer to nearest whole dollar. Answer is complete but not entirely correct. Present value $ 671,974 x
! Required information [The following information applies to the questions displayed below] On January 1, Boston Company completed the following transactions (use a 7% annual interest rate for all transactions): ( FV of $1, PV of $1, FVA of $1, and PVA of $1) Note: Use appropriate factor(s) from the tables provided. a. Promised to pay a fixed amount of $6,900 at the end of each year for eight years and a one-time payment of $116,800 at the end of the 8th year. b. Established a plant remodeling fund of $491,350 to be available at the end of Year 9. A single sum that will grow to $491,350 will be deposited on January 1 of this year. c. Agreed to pay a severance package to a discharged employee. The company will pay $75,900 at the end of the first year, $113,400 at the end of the second year, and $150,900 at the end of the third year. d. Purchased a $174,500 machine on January 1 of this year for $34,900 cash. A five-year note is signed for the balance. The note will be paid in five equal year-end payments starting on December 31 of this year. 3. In transaction (c), determine the present value of this obligation. Note: Round your intermediate calculations and final answer to nearest whole dollar. Answer is complete but not entirely correct. Present value $ 671,974 x
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 1PA: On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10%...
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Required information
[The following information applies to the questions displayed below]
On January 1, Boston Company completed the following transactions (use a 7% annual interest rate for all transactions): (
FV of $1, PV of $1, FVA of $1, and PVA of $1)
Note: Use appropriate factor(s) from the tables provided.
a. Promised to pay a fixed amount of $6,900 at the end of each year for eight years and a one-time payment of
$116,800 at the end of the 8th year.
b. Established a plant remodeling fund of $491,350 to be available at the end of Year 9. A single sum that will grow to
$491,350 will be deposited on January 1 of this year.
c. Agreed to pay a severance package to a discharged employee. The company will pay $75,900 at the end of the first
year, $113,400 at the end of the second year, and $150,900 at the end of the third year.
d. Purchased a $174,500 machine on January 1 of this year for $34,900 cash. A five-year note is signed for the balance.
The note will be paid in five equal year-end payments starting on December 31 of this year.
3. In transaction (c), determine the present value of this obligation.
Note: Round your intermediate calculations and final answer to nearest whole dollar.
Answer is complete but not entirely correct.
Present value
$
671,974 x](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6b8647d2-8973-4902-be2b-9213d3635947%2Fbc14866a-352a-485d-9311-81a31295da55%2F23lv1y_processed.png&w=3840&q=75)
Transcribed Image Text:!
Required information
[The following information applies to the questions displayed below]
On January 1, Boston Company completed the following transactions (use a 7% annual interest rate for all transactions): (
FV of $1, PV of $1, FVA of $1, and PVA of $1)
Note: Use appropriate factor(s) from the tables provided.
a. Promised to pay a fixed amount of $6,900 at the end of each year for eight years and a one-time payment of
$116,800 at the end of the 8th year.
b. Established a plant remodeling fund of $491,350 to be available at the end of Year 9. A single sum that will grow to
$491,350 will be deposited on January 1 of this year.
c. Agreed to pay a severance package to a discharged employee. The company will pay $75,900 at the end of the first
year, $113,400 at the end of the second year, and $150,900 at the end of the third year.
d. Purchased a $174,500 machine on January 1 of this year for $34,900 cash. A five-year note is signed for the balance.
The note will be paid in five equal year-end payments starting on December 31 of this year.
3. In transaction (c), determine the present value of this obligation.
Note: Round your intermediate calculations and final answer to nearest whole dollar.
Answer is complete but not entirely correct.
Present value
$
671,974 x
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