Question

Giovinazzo Construction Company plans to buy a new dump truck that has a sticker price of $ 68,800. The dealer has offered to finance the truck on an installment note at 5 percent interest for 48 months.
Required:
A. What cost will be assigned to the truck and the note?
B. What is the monthly payment?
C. If Giovinazzo buys the truck on October 31, 2011, what is the interest expense shown on the budgeted income statement for calendar year 2011?
D. If Giovinazzo buys the truck on October 31, 2011, what is the carrying value of the note shown on the budgeted balance sheet for 2011?


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  • CreatedMarch 25, 2015
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