Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)1. On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $26,000 on the purchase date and the balance in five annual installments of $9,000 on each June 30 beginning June 30, 2022. Assuming that an interest rate of 11% properly reflects the time value of money in this situation, at what amount should Johnstone value the equipment? Complete this question by entering your answers in the tabs below.Required 1 Required 2 Required 3On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese$26,000 on the purchase date and the balance in five annual installments of $9,000 on each June 30 beginning June 30,2022. Assuming that an interest rate of 11% properly reflects the time value of money in this situation, at what amountshould Johnstone value the equipment? (Round your final answers to nearest whole dollar amount.)Table values are based on:n =Cash FlowInstallmentsDown Paymenti=$$AmountValue of the equipment511%9,00026,000Present ValueShow less

It has been given that there is a down payment as well as the instalment of $9,000 each year at the…

On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $26,000 on the purchase date and the balance in five annual installments of $9,000 on each June 30 beginning June 30, 2022. Assuming that an interest rate of 11% properly reflects the time value of money in this situation, at what amount should Johnstone value the equipment? (Round your final answers to nearest whole dollar amount.) Show less Table values are based on: Cash Flow Installments Down Payment i= $ $ Amount Value of the equipment 5 11% 9,000 26,000 Present Value

On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $26,000 on the purchase date and the balance in five annual installments of $9,000 on each June 30 beginning June 30, 2022. Assuming that an interest rate of 11% properly reflects the time value of money in this situation, at what amount should Johnstone value the equipment? (Round your final answers to nearest whole dollar amount.) Show less Table values are based on: Cash Flow Installments Down Payment i= $ $ Amount Value of the equipment 5 11% 9,000 26,000 Present Value

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 5MC: On May 1, 2019, a company purchased a new machine that it does not have to pay for until May 1,...

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