18.On January 1, 2021, REEDY SLENDER Co. purchased fixtures at an installment price of ₱520,000. REEDY paid ₱40,000 cash down payment and issued a three-year noninterest bearing note of ₱480,000 payable in three equal annual installments starting December 31, 2021 for the balance. The prevailing rate for the note as of January 1, 2021 is 12%. How much is the initial cost of the fixtures? 360,000 424,293 480,000 520,000
18.On January 1, 2021, REEDY SLENDER Co. purchased fixtures at an installment price of ₱520,000. REEDY paid ₱40,000 cash down payment and issued a three-year noninterest bearing note of ₱480,000 payable in three equal annual installments starting December 31, 2021 for the balance. The prevailing rate for the note as of January 1, 2021 is 12%. How much is the initial cost of the fixtures? 360,000 424,293 480,000 520,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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18.On January 1, 2021, REEDY SLENDER Co. purchased fixtures at an installment price of ₱520,000. REEDY paid ₱40,000 cash down payment and issued a three-year noninterest bearing note of ₱480,000 payable in three equal annual installments starting December 31, 2021 for the balance. The prevailing rate for the note as of January 1, 2021 is 12%. How much is the initial cost of the fixtures?
360,000
424,293
480,000
520,000
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