On January 1, the Hudson Company borrowed $190,000 to purchase machinery and agreed to pay 10% interest for six years on an installment note. Each note payment is $43,625 and is due on the last day of the year. What is the carrying value of the loan at the end of the first year? (Do not round intermediate calculations. Only round your final answer to the nearest dollar.) A. $146,375 B. $209,000 ○ C. $190,000 D. $165,375

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 15MC: Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual...
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On January 1, the Hudson Company borrowed $190,000 to purchase machinery and agreed to pay 10% interest for six years on an installment note. Each note payment is $43,625 and is due on the last day of
the year. What is the carrying value of the loan at the end of the first year? (Do not round intermediate calculations. Only round your final answer to the nearest dollar.)
A. $146,375
B. $209,000
○ C. $190,000
D. $165,375
Transcribed Image Text:On January 1, the Hudson Company borrowed $190,000 to purchase machinery and agreed to pay 10% interest for six years on an installment note. Each note payment is $43,625 and is due on the last day of the year. What is the carrying value of the loan at the end of the first year? (Do not round intermediate calculations. Only round your final answer to the nearest dollar.) A. $146,375 B. $209,000 ○ C. $190,000 D. $165,375
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