CH9 HW 5 points 2 On January 1 of this year, Skamania Company completed the following transactions (assume a 9% annual interest rate): (FV of $1, PV of $1, FVA of $1, and PVA of $1) Note: Use the appropriate factor(s) from the tables provided. Skipped eBook Print References a. Bought a delivery truck and agreed to pay $60,100 at the end of three years. b. Rented an office building and was given the option of paying $10,100 at the end of each of the next three years or paying $28,100 immediately. c. Established a savings account by depositing a single amount that will increase to $90,200 at the end of seven years. d. Decided to deposit a single sum in the bank that will provide 9 equal annual year-end payments of $40,100 to a retired employee (payments starting December 31 of this year). Required: a. What is the cost of the truck that should be recorded at the time of purchase? b. Which option for the office building results in the lowest present value? c. What single amount must be deposited in this account on January 1 of this year? d. What single sum must be deposited in the bank on January 1 of this year? Complete this question by entering your answers in the tabs below. Required a Saved Required b Cost of the truck Required c Required d What is the cost of the truck that should be recorded at the time of purchase? (Round your answer to nearest whole dollar.) < Required a Help Required b > Save
CH9 HW 5 points 2 On January 1 of this year, Skamania Company completed the following transactions (assume a 9% annual interest rate): (FV of $1, PV of $1, FVA of $1, and PVA of $1) Note: Use the appropriate factor(s) from the tables provided. Skipped eBook Print References a. Bought a delivery truck and agreed to pay $60,100 at the end of three years. b. Rented an office building and was given the option of paying $10,100 at the end of each of the next three years or paying $28,100 immediately. c. Established a savings account by depositing a single amount that will increase to $90,200 at the end of seven years. d. Decided to deposit a single sum in the bank that will provide 9 equal annual year-end payments of $40,100 to a retired employee (payments starting December 31 of this year). Required: a. What is the cost of the truck that should be recorded at the time of purchase? b. Which option for the office building results in the lowest present value? c. What single amount must be deposited in this account on January 1 of this year? d. What single sum must be deposited in the bank on January 1 of this year? Complete this question by entering your answers in the tabs below. Required a Saved Required b Cost of the truck Required c Required d What is the cost of the truck that should be recorded at the time of purchase? (Round your answer to nearest whole dollar.) < Required a Help Required b > Save
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:CH9 HW
5
points
2
On January 1 of this year, Skamania Company completed the following transactions (assume a 9% annual interest rate): (FV of $1, PV of
$1, FVA of $1, and PVA of $1)
Note: Use the appropriate factor(s) from the tables provided.
Skipped
eBook
Print
References
a. Bought a delivery truck and agreed to pay $60,100 at the end of three years.
b. Rented an office building and was given the option of paying $10,100 at the end of each of the next three years or paying
$28,100 immediately.
c. Established a savings account by depositing a single amount that will increase to $90,200 at the end of seven years.
d. Decided to deposit a single sum in the bank that will provide 9 equal annual year-end payments of $40,100 to a retired employee
(payments starting December 31 of this year).
Required:
a. What is the cost of the truck that should be recorded at the time of purchase?
b. Which option for the office building results in the lowest present value?
c. What single amount must be deposited in this account on January 1 of this year?
d. What single sum must be deposited in the bank on January 1 of this year?
Complete this question by entering your answers in the tabs below.
Required a
Saved
Required b
Cost of the truck
Required c
Required d
What is the cost of the truck that should be recorded at the time of purchase? (Round your answer to nearest whole dollar.)
< Required a
Help
Required b >
Save
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