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Business, 03.04.2021 04:10 ecenteno2004

On December 30, Year 12, AGH, Inc. purchased a machine from Grant Corp. inexchange for a zero-interest-bearing note requiring eight payments of $70,000. The first paymentwas made on December 30, Year 12, and the others are due annually on December 30.At date of issuance, the prevailing rate of interest for this type of note was 11%. Presentvalue factors are as follow: Period Present Value of Ordinary Annuity of 1 at 1100 Present Value of Annuity Due of 1 at 11%
7 4.712 5.231
8 5.146 5.712

On AGH's December 31, 2017 balance sheet, the net note payable to Grant is:

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On December 30, Year 12, AGH, Inc. purchased a machine from Grant Corp. inexchange for a zero-intere...

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