TB MC Qu. 9-84 (Algo) Rusty Corporation purchased a rust-inhibiting...Rusty Corporation purchased a rust-inhibiting machine by paying $58,000 cash on the purchase date and agreed topay $11,600 every three months during the next two years. The first payment is due three months after the purchasedate. Rusty's incremental borrowing rate is 8%. The liability reported on the balance sheet as of the purchase date,after the initial $58,000 payment was made, is closest to: (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Useappropriate factor(s) from the tables provided.)Multiple Choice$150,800.$142,976.$92,800.$84,976.

Annual interest rate = 8%Therefore, quarterly interest rate = 8/4 = 2%No. of years = 2…

Answered: Rusty Corporation purchased a…

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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Chapter: Adjusted Financial Statements
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Use either the tables from Appendix E in your textbook or a financial calculator for this question. Libby Company purchased equipment by paying $5,000 cash on the purchase date and agreeing to pay $5,000 every six months during the next four years. The first payment is due six months after the purchase date. Libby's borrowing rate is 8%. The liability reported on the balance sheet as of the purchase date, after the initial $5,000 payment was made: Select the answer that is closest to (within $250 above or below) what you calculated. If an answer is more than $250 away from what you calculated, you should consider it incorrect. Group of answer choices A)$45,000 B)$33,664 C)$38,664 d)$40,000 e)None of the above

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