Bob's Excavating purchased some equipment by issuing a three-year 6% note for $8,000 when the market rate for an obligation of this nature was 8%. The interest is payable annually. Actuarial information for three periods follows: 6% 8% 0.839619 0.793832 Present value of 1 2.673012 2.577097 Present value of annuity of 1 At the date of purchase, what amount should be debited to Equipment? a. $8,000.00 b. $7,587.66 c. $6,716.96 d. $6.350.66

Bob's Excavating purchased some equipment by issuing a three-year 6% note for $8,000 when the market rate for an obligation of this nature was 8%. The interest is payable annually. Actuarial information for three periods follows: 6% 8% 0.839619 0.793832 Present value of 1 2.673012 2.577097 Present value of annuity of 1 At the date of purchase, what amount should be debited to Equipment? a. $8,000.00 b. $7,587.66 c. $6,716.96 d. $6.350.66

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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