Alden Trucking Company is replacing part of its fleet of trucks by purchasing them under a note agreement with Kenworthy on January 1, 2019. Alden financed $39,052,588, and the note agreement will require $10.04 million in annual payments starting on December 31, 2019, and continuing for a total of four more years (final payment December 31, 2023). Kenworthy will charge Alden Trucking Company the market interest rate of 9% compounded annually. After the first payment was made, the note payable liability on December 31, 2019, is closest to: a) $34,032,588 b) $40,160,000 c) $29,012,588 d) $32,527,321

Alden Trucking Company is replacing part of its fleet of trucks by purchasing them under a note agreement with Kenworthy on January 1, 2019. Alden financed $39,052,588, and the note agreement will require $10.04 million in annual payments starting on December 31, 2019, and continuing for a total of four more years (final payment December 31, 2023). Kenworthy will charge Alden Trucking Company the market interest rate of 9% compounded annually. After the first payment was made, the note payable liability on December 31, 2019, is closest to: a) $34,032,588 b) $40,160,000 c) $29,012,588 d) $32,527,321

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

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 10MC: On January 1, 2019, Park Company accepted a 36,000, non-interest-bearing, 3-year note from a major...

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