On January 1, Dilbert Co. exchanges a $480,000 5-year, non-interest-bearing note payable for a tract of land. For purposes of computing property taxes, the state has valued the land at $450,000. Dilbert Co.'s incremental borrowing rate is 10%, the future value of $1 for 5 periods at 10% is $1.61051, and the present value of $1 for 5 periods at 10% is $ .62092. At what amount should the land be recorded on the January 1 purchase date?

a. $805,255
b. $480,000
c. $450,000
d. $298,042

Answer rating: 100% (QA)

The correct answer is d 298042 Explanation The prese... View the full answer