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Business, 20.02.2020 16:47 isabellemaine

On December 30, 2005, Bart, Inc. purchased a machine from Fell Corp. in exchange for a non-interest bearing note requiring eight payments of $20,000. The first payment was made on December 30, 2005, and the others are due annually on December 30. At date of issuance, the prevailing rate of interest for this type of note was 11%. Present value factors are as follows:

Period Present value of $1 at 8% Present value of ordinary annuity of $1 at 8%
10 0.50 6.25
10 0.46 6.71

In its December 31, 2005, balance sheet, what amount should Chang report as note receivable?
a. $45,000
b. $46,000
c. $62,500
d. $67,100
e. None of these

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On December 30, 2005, Bart, Inc. purchased a machine from Fell Corp. in exchange for a non-interest...
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