Question: Fishbone Corp. purchased a special tractor on December 31, 2012. The purchase agreement stipulated that Fishbone should pay $ 20,000 at the time of purchase

Fishbone Corp. purchased a special tractor on December 31, 2012. The purchase agreement stipulated that Fishbone should pay $ 20,000 at the time of purchase and $ 5,000 at the end of each of the next 8 years. The tractor should be recorded on December 31, 2012 at what amount, assuming an appropriate interest rate of 12%.

Step by Step Solution

★★★★★

3.27 Rating (162 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Where as given information n 8 i 12 Formula Present Value ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

1368-B-M-A-V-C(1839).xlsx

300 KBs Excel File

Students Have Also Explored These Related Managerial Accounting Questions!

(Various Time Value Situations) Answer each of these unrelated questions. (a) On January 1, 2003, Rather Corporation sold a building that cost $250,000 and that had accumulated depreciation of...

(a) On January 1, 2012, Fishbone Corporation sold a building that cost $250,000 and that had accumulated depreciation of $100,000 on the date of sale. Fishbone received as consideration a $240,000...

Various Time Value Situations Answer each of these unrelated questions. (a) On January 1, 2008, Aaron Brown Corporation sold a building that cost $250,000 and that had accumulated depreciation of...

(d) Fishbone Corporation purchased a special tractor on December 31, 2014. The purchase agreement stipulated that Fishbone should pay $20,000 at the time of purchase and $5,000 at the end of each of...

Fishbone Corporation purchased a special tractor on December 31, 2014. The purchase agreement stipulated that Fishbone should pay $22,950 at the time of purchase and $5,360 at the end of each of the...

Fishbone Corporation purchased a special tractor on December 31, 2014. The purchase agreement stipulated that Fishbone should pay $21,890 at the time of purchase and $5,320 at the end of each of the...

Prepare the journal entry to record transaction d. Fishbone Corporation purchased a special tractor on December 31, 2025. The purchase agreement stipulated that Fishbone should pay $20,000 at the...

Please prepare a JOURNAL ENTRY for this transaction: Fishbone Corporation purchased a special tractor on December 31, 2025. The purchase agreement stipulated that Fishbone should pay $20,000 at the...

*Problem 6-1 Answer each of these unrelated questions Click here to view factor tables On January 1, 2017, Waterway Corporation sold a building that cost $255,260 and that had accumulated...

Answer each of these unrelated questions. Click here to view factor tables On January 1, 2020, Teal Corporation sold a building that cost $271,010 and that had accumulated depreciation of $101,000 on...

Find the functions (a) f o g, (b) g o f, (c) f o f, and (d) g o g and their domains. F(x) = x2 - 1 g(x) = 2x + 1

Consider a market with two firms A and B producing a good. Their cost functions are CA(QA) = Q + aQA + F and CB (QB) = Q3 +bQB + FB, respectively. Where FA and FB are fixed costs. The demand function...

Consider the situation in Review Exercise 8.74. Suppose a considerable effort is conducted to tighten the variability in the system. Following the effort, a random sample of size 40 is taken from the...

1. Suppose that you are evaluating the net benefits of Kitchener's bid to host the Ontario Winter Games. You are given the following diagram to determine whether to bid the per event price of $10,000...

Here is the link for texmessages.rds dataset. Please comment below if you have problems accessing it. please help me with the solution and rcode....

Choose the correct response(s) i. For bonds selling at par (face) value, the price of the bond is equal to the face value of the bond. ii. For bonds selling at a discount, the bond's yield is greater...

Happy Books sells paperback books for $7 each. The variable cost per book is $5. At current annual sales of 200,000 books, the publisher is just breaking even. It is estimated that if the authors'...