On December 31, 2019, Univ Corporation sold for 50,000 an old machine having an original cost of 90,000 and a book value of 40,000. The terms of the sale were as follows: 10,000 down payment 20,000 payable on December 31 each of the next two years The agreement of sale made no mention of interest; however, 9% would be a fair rate for this type of transaction. What should be the amount of the notes receivable net of the unamortized discount on December 31, 2020 rounded to the nearest dollar? (Round your present value factor to 5 digits).

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On December 31, 2019, Univ Corporation sold for 50,000 an old machine having an original cost of 90,000 and a book
value of 40,000. The terms of the sale were as follows:
10,000 down payment
20,000 payable on December 31 each of the next two years
The agreement of sale made no mention of interest; however, 9% would be a fair rate for this type of transaction. What
should be the amount of the notes receivable net of the unamortized discount on December 31, 2020 rounded to the
nearest dollar? (Round your present value factor to 5 digits).
Transcribed Image Text:On December 31, 2019, Univ Corporation sold for 50,000 an old machine having an original cost of 90,000 and a book value of 40,000. The terms of the sale were as follows: 10,000 down payment 20,000 payable on December 31 each of the next two years The agreement of sale made no mention of interest; however, 9% would be a fair rate for this type of transaction. What should be the amount of the notes receivable net of the unamortized discount on December 31, 2020 rounded to the nearest dollar? (Round your present value factor to 5 digits).
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