Present Value of Ordinary Annuity of 1 at 10% Present Value of Periods 1 at 10% .56 4.36 .51 4.87
Present Value of Ordinary Annuity of 1 at 10% Present Value of Periods 1 at 10% .56 4.36 .51 4.87
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2016, Ott Company sold goods to Fox Company. Fox signed a noninterest-bearing note requiring payment of $60,000 annually for seven years. The first payment was made on January 1, 2016. The prevailing rate of interest for this type of note at date of issuance was 10%. Information on present value factors is as follows: Ott should record sales revenue in January 2016 of a. $214,200 b. $261,600 c. $292,600 d. $321,600
Transcribed Image Text:Present Value of
Ordinary
Annuity
of 1 at 10%
Present Value of
Periods
1 at 10%
.56
4.36
.51
4.87
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