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On January 2, 2023, Wildhorse Corp. purchases a new machine. The company makes a $3000 cash down payment and agrees to pay four annual instalments of $4100 each, starting December 31, 2023, signing a non-interest-bearing note to this effect. The cash equivalent price of the machine is not known, but the appropriate interest rate for this type of transaction is 8% p.a. Rounding to the nearest dollar (if necessary), Wildhorse should record the cost of the machine at Click here to view the factor table. O $24000. $16400. $16580. O $13580.

On January 2, 2023, Wildhorse Corp. purchases a new machine. The company makes a $3000 cash down payment and agrees to pay four annual instalments of $4100 each, starting December 31, 2023, signing a non-interest-bearing note to this effect. The cash equivalent price of the machine is not known, but the appropriate interest rate for this type of transaction is 8% p.a. Rounding to the nearest dollar (if necessary), Wildhorse should record the cost of the machine at Click here to view the factor table. O $24000. $16400. $16580. O $13580.

FINANCIAL ACCOUNTING
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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On January 2, 2023, Wildhorse Corp. purchases a new machine. The company makes a $3000 cash down payment and agrees to pay four annual instalments of $4100 each, starting December 31, 2023, signing a non-interest-bearing note to this effect. The cash equivalent price of the machine is not known, but the appropriate interest rate for this type of transaction is 8% p.a. Rounding to the nearest dollar (if necessary), Wildhorse should record the cost of the machine at Click here to view the factor table. $24000. O $16400. O$16580. $13580.
Transcribed Image Text:On January 2, 2023, Wildhorse Corp. purchases a new machine. The company makes a $3000 cash down payment and agrees to pay four annual instalments of $4100 each, starting December 31, 2023, signing a non-interest-bearing note to this effect. The cash equivalent price of the machine is not known, but the appropriate interest rate for this type of transaction is 8% p.a. Rounding to the nearest dollar (if necessary), Wildhorse should record the cost of the machine at Click here to view the factor table. $24000. O $16400. O$16580. $13580.
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