1) At what amount should Montgomery record the note payable and corresponding cost of the building on January 1, 2021?

2) How much interest expense on this note will Montgomery recognize in 2021?

(Round final answers to nearest whole dollar)

On January 1, 2021, the Montgomery Company agreed to purchase a building by making six payments. The first three are to be $25,000 each, and will be paid on December 31, 2021, 2022, and 2023. The last three are to be $40,000 each and will be paid on December 31, 2024 2025, and 2026. Montgomery borrowed other money at a 10% annual rate. (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of S1 and PVAD OL $1 (Use appropriate foctor(s) from the tables provided.) Required: 1. At what amount should Montgomery record the note payable and corresponding cost of the building on January 1, 2021? 2. How much interest expense on this note will Montgomery recognize in 2021? (For all requirements, Round your final answers to nearest whole dollar amount.) 1. 2. Amount recorded Interest expense TABLE 1 Future Value of $1 FV - 51(1+)" 1.0% 1.5% 20% 25% 30% 35% 4095 10.0% 11 09 120% 2009 1 101000 1.01500 1.02000 102500 1.03000 1.03500 1.04000 1.04500 105000 1.055DO 1.06000 1.07000 1.05000 1.09000 1 10000 111000 112000 120000 2 1.02010 1.03022 1.04040 105063 1.00090 1.07123 108160109203 110250 111303112360 114490 3 103030 1.04568 1.06121 107689 1.09273 L10872 112486 114117 115763 117424 1191021 2501 4 1.04060 1.05136 1062431.10381 112551 1.14752110986 119252121551 1232 1 6248 1310RO 5 1.05101 1.07728 1.10408 1.13141 115927 1.18769 1.21665 1.24618 127678 1.30096 133823 140255 L166102.18810121000 125971 1 19503133100 116019 141158 146410 1.23210 136763 151807 1.250 1.40093 157352 1.44000 1.72800 207360 1.46933 153852 1.61051 168506 176234 2.48832 29859 6 7 8 9 10 106152109344 1.12616 1.15969119405 1.22926 1.26532 1.30226 134010 1.37884 1.41852 1.07214 L10984 1.14869 1.18869 122957 1.27228 131593 136086 140710 1.45468 50363 1.08286 1.12649 1.17166 121840 1.26677131681 14857 142210 147746 153469159385 1 09369 1.14339 1.19509 1.24586 130477 136290 1.42331 1.48610 55133 161909168943 1.10462 1.16054 1 21899 123008 134392 141060 145024 155197 162589 1.70814 1.79085 1.50073 5 8687 167710 1.605781.71382 .2004 21819 185093 199256 183846 1.99900 2.17189 1.96715 215892236736 194872 207616 2.14359230454 235795 255804 2.59374 2.83942 221068 247596 277308 3.1058S 358315 4.29982 5.15978 6.19174 258043 2.85312 315176 3.47855 311843 349845 389598 11111567 117795 124337 131209138423 1.45997 1.53945 1.625 1.71034 1.80209 1.89830 2.10485 233164 12 1.12683 119562 1.26824 1.3489 142576 151107 1.60103 09588 1.79586 1.90121201220 13 113809 121355 1.29361137851 146853 1.56396 1.66507 177220 1.88565 2.00577 2.13293 240985 2.71962 14 114947 1.23176 131948 141297 151259 161 169 173168 1.85194 1.97993 257853 2.93719 15 1.16097 125023 134557 146830 155197 167535 1.80094 193528 2078932232432.396562759033.17217 7.44100 391610 10.69932 12.83918 3.06580 3.34173 364243 3.45227 3.79750 417725 3.58328 431044 4.78459 4.36349 4.58711 547357 15 40702 16 117258 126899 137279 148451 160471 173399 1.87296 2.02237 218287 2.35526 2.54035 17 1.18430 1 28802140024 1.52162 165285 1.7946 1947902.11338 229202 2.48480 2.69277 18 119015 1.30734 1.42825 1 55966 1.70243 1.85749 2.02562 220848 240662 262147 285434 19 1.20311132695 145681 1.59865 175351 1922.50 2.10665 230786 2.52095 276565 3.02500 20 1.22019 134686 1.485951.61862 180611 198979219112 2.41171 265330 291776 3.20714 2.95216 343594 3.97031 459497 531019 6.13039 3.1582 370002 41261 505447 S99509636604 3.3799) 39602471712333992654335 708997 18.48343 22.18611 2067113 3.61653 3.86965 4.31570 4.66096 5.14106 5.60441 6.115917263348.61276 6.72750 806231 9.64629 31.9-1800 3833760 21 1.23239 136706 151567 1.67958 186029 205913 2.27877 2.52024 2.78596 3.07823 3.39956 4.14056503383 6.10881 740025 8.94917 10.80385 46.00512 25 1 2243 145095 1 640611 R5394 209378 2.36324 2.66554 3.00543 335635 3313394291875.4274) 6 84848 8620310 83471 13 5854$ 170000695 39622 30 134785 156308 1.81136 2.09757 242726 20679 320340374532 432194 4 983955.74349 761226 1006266 13.26768 1741940 22.89230 299599223737631 40 1.48886 1.81402 22034 2.68506 326204 395936 40101 5.61616 70399 851331 10 28572 14.97446 21.72452 31.409424525926 65.00087 93.05097 146977160 TABLE 2 Present Value of $1 PV 51 (1 + 7)" 104 1.54 2.046 2.54 3.04 3.5% 4.0% 4.54 3.04 3.54 6.04 7.04 8.0% 0.04 12.04 12.04 12.04 30.04 109901009520903997561097087096615 096154 095094 095235 094787 090093458 0.925910 911 99 0 0 011133 2 90097056 09611295181094360 093351092456 00157 090101 011010000373403573454163 03366 031179719 069444 3097059 0.95632 090732 097100091514 090194 0.58900 0.37630 0.86384 085161 03392 0.81630 0.79383 077218 0.75131 073119 071178 0.57870 4 0.96098 094216 0.92385 090395 59 037144 08540 0.83856 082270 080722 0.79209 0.76290 0.73503 0.70543 068301 0.65873 063552 041225 5 095147 0.92836 0.905730.83385 086361084197 082193 0.0245 0.78353 0.76513 0.14726 0.71299 060058 064993062092 0.59345 0.56743 040188 6 0.94305 0.91454 0.88797 0.86210 0.83748 0.81350 0.79031 0.76790 0.74622 0.72525 0.70496 0.664 0.63017 0.59617 0.5647 0.55464 .504303340 7 093272 090103 0.87056 0.34127 0.1109 0.78599 0.75992 073483 071068 068744 0 0 0.62275 0.58149 054703 0.51316 0.48166 04523507906 092348 0.88771 085349 052075 0.78941 075941 073069 0.70319 0.67634 065160 069741058201 0.54027 0.50187 046651043393 0.40353 023357 091434 067459 03676 013073 076642 .73373 070259 067290066161061753059190054393 050035 0460430641039092030001 0.19381 10 090529 056167 0.82035 0.78120 0.1409 0.70892 0.57556 06039 0.61391 058543 0.58 0.50835 046319 0.42241 0.38554 035218 032197 0.16151 110.89631 0.54893 0.80426 0.76214 0.7134 6.68495 0.64958 0.61630 0.58468 0.55491 0.53679 47509 0.42888 0.3875 0.250 0.31728 0.28748 0.13450 12 0.58745 083639 0.78849 0.74356 0.70138 066178 0.62460 0.58966 0.55684 052598 049204401039711 0.35553 03186) 0.28584 025668 011218 13 0.57866 0.83403 0.77303 0.72542 0.680950639400.00057 0.56427 0.53032 0.49856 0.4854 0.41495 0.36770 017618 0.28966025751 0.32917009346 14 030996 081185 075758 0.70773 066112 061778 0.57748 0.51997 050507 047257 0420 38782034046 029935 0.03 0.33199 0.0462 0077 15 03613507985 074301 0.00047 048 059 055536 5167 0 48102 0.4793 041727 0163545031534 021454 02399020500012 16 381 703 6.72545 0.746.61314 6.578716.53391 0.0447 8.45811 0.43458 3936 433873 .1919 218 219 1 9 0.18313 540 17 05433 .77639071416 0657200 05572051337 0.47318 0.436040345037136 031657027027 023107019754 01695014564004507 1103160076491 070016064117 056739 053836049363 0.452800.4155203514703002985025035 021199 01796 015732011001003756 19 087774 075361 068643 06755305709 05 2016 047464 0.4330039573 036158 011051 21651 033171019449 016351 013768 0.1161100110 20 0.1194 0.447 067997 0.610.7 0.55368050357 0.45619 0.41464 0. 39 023 0.31180022 0.21455 017543014664013401 0101003608 11 6.73156 457 0.50539 .5875 .48557 43853 .0 3 5094 0.3343 .16 0.34151 0.1996 167 1353 .02 14 07875754 0672 4 91943761901207031007 01766638197501571110110 25 77977 9 4716611575122953003021300 140 0 104 76 07561061910 05107 008 00708 0165 0338 0915 309 0211201961 01500 0.11591 000 000 0032 04187 00000 2974914 069366111 0 64356 0110 01002495 0211680 164560140560 1073 10400450000100 30 0.74191 0.43976 0.55207 047674 0.41102 35628 0.30831 .36700 0.23138 0.00064 0.1411 0.13197 0.00035 .075376371 0.00168 G S 0.00471 31 073458 0 61031054125 065 01999)01423096462555022016 1018 0162017700910101001100011 00000011 4006718555120452917240602575702081917193140501174 000 000 000 0015300105000 TABLE 3 Future Value of an Ordinary Annuity of $1 FVA - ( 11- 1 1.54 2.04 2.5% 20% 1546 1 1.04 10000 20100 7.04 3.0% 0.0% 10000 1.000 1.0000 2.0700 2.0800 20900 3.21493.2454 3.2731 4.506145731 5.75075.86665.9847 0.0% 10000 21000 33100 46410 61051 11.04 12.04 20.0% 10000 10000 21100 2.1200 2.2000 33421 3.3744 35100 4 7097 4.7793 53680 6.2278635287.4416 7.1833 7.7156 79120 9.7833 R15 10.0890 8.4326 3.5830 8.7361 93685 9.5593 9.7546 99545 10.1991 10.3685 10 10.4622 10.7027 10.9197 11.2034 11.4639 11.7314 102598 11.4913119780 13.1808 13.8164 7.3399 8.9228 10.6366 12.4876 144866 75233 9.2004 11.0285 13.0210 15 1929 9.199 12.9159 16.01 207989 259587 13.5795 159374 14.1640 167220 14.7757 175487 18.5317 19.5614 17.5603 201407 11 11.5 11.5633 12.1687 12.4835 12.8078 13.1429 12 12.625 13.0412 13.4121 13 17.8095 142368 14.6803 15.1404 14 149474 15.4504 15.9739 165190 15 16.00 16.0821 17.2934 179319 14,206 14.9716 15.7836 16.6455 159171 16.3856 16.8699 17.8585 17 7130 120 1821 201406 189321 1959862096 10151 225505242109 20 741 2157 22087 212760251290 271521 206546 31.1504 241331 19 SOS 280291 32.392659.1959 373797 72 0351 260192 29 3600 26 2116 30.0949 0 54 273750 312 0316 16 17.2579 173324 18.6323 19.3803 17 11.4304 19 2014 20 0121 18 19 6147 204894 214123 22 19 20 2100 21.7967 22.406 23 3460 20 22.0190 23:1237 2.2914 25.547 26 22.7133 23.595 24.611 25.6725 27.5581 34.3343 247417 253404 26.994282129 268551281324 294512 30.9057 33.9990 29.0636 305390 32.1027337000 37.3790 41.4463 7781313714 3300603436536785699955 45.7630 33.0034 369737 413013 460185 11001 35.9497 40.5447 455993 511591 7.750 39.1899 42.7533 87.4401 4008 48837 105.9306 50 1959 55 117 118 1167 5653963497 154.7400 4.2028 72.054 155 6880 2123292 24.4705 25.7833 27.1833 28.6765 30.2005 31.9093 30 34.749 175387 405681 43.9027475754 S1627 560549 49485164 54267604030 67402675.4013 345503 95 0255 33.7831 35.7193 37.7841 39.9937 44.565 56.429 56.7645 64.0025 72.3451 215.0256 610071 66 4358 72.4355 79.05829445061132232 136 3075 164-1940 199 0309 2413327 11818816 107.0303 1207998136 6056 154.7630 199.6351258 0533734125961 67670914 733.8578 TABLE 4 Present Value of an ordinary Annuity of $1 9.04 1804 110 120 00 1 3039 099010 197040 532 95558 097561 1990 191 3 2 099 291220 25 3560 1 346 19 1 7911734 11 10 152778 272335 269793 257301262257702531 260 261 21054 358753 3540595 3.50515 66513171 333 1 10 1125 1993 348 409 41216 100 600 29051 4 $ 390197 485343 385338 330773376197 37710 4.78264 471345464583 457971451505 445182 6 41719 33 7 $ 79543 80719 0143 6728196.59821647199 765168745593 732548 S50813 6.34939 717014 5.07549 5.78637 646121 7.10782 7.72173 499583491733 5.6297558238 633457 6099 S 6.95220 650169 478654 4.61884 410411141 332551 5.3899 037 50329 4 71230 456176360459 S 14664 5514853303514512496764 383716 6.51523624689 5.99525 5.759025.53705535403097 702358 7100141766614057 91 565032 41927 9 56602 10 947130 9 36052 8 16234 99 7.99087 100 100 11001 11 10.36763 10.071139.78655 0.3141 5 69.0015 8.76048 35789210641 00254 786 7.967 711196 .50 6.4050 10650370 431706 12 11 25508 1090751105751105776 995.00 9.6433393501911858 1335 610210334 749 751608 10816092619017441972 13 12.13374 1173153 1114037 10319 106547 10.302749.985659.63085 9.957911708 5208357659037 7.436. 7 1036 .14937 8.42355 14 13 00370 12:54333 12106111 0011 2007 10 92057 10 56312 10233839 .864 99019931547 3424 76 7 6 9011461057 151 osos 34123 12496 11937941151111111839 10.7395510379661003758971235 10791550480609 76008719080 457547 16 1717 113136 13.1 13.50 13.54110 1200011 11.48330 11.2002 1.83777 10.46216 10.10580 3 85137312782371737986 473 4.73956 17 15 6 14 0614 1 110 1116611265137 121656717071911274071046 1047736 916317 1216 416 75457911414 15 1042 15 6726 1920 143336 1375351 13.0968 12699301215999 11.6895911.24607 1087760100590933718 15563 2014 2018 73486741219 19 1723011661567146 147 131 130 1313394 12593091208532 11 60765111581210335090 9 011 7 73857843850 2011 04555 17 16 15 14 13 13 13 00794124621119011499 100 BIS 1 444 21 ILS 1. 4 17.00 168 ISIS 169 .03916 13.4072 1287115 12.27534 1.6 10.3383 10.11.201 4.3 707 530 2133 25 22023160714 1973 10 1740 16 15 62208 H H 09194 114093 1276 1165358 1067 0704 617 750144759 25807 0151 20302913 6004 130172230316289153734 145371176483 12.69041125778 10 14 00 103 10358 49784 * 323400239185 1735483 1037 138 13507 19 18 40158 17.1330916412000 120 100 350 1340784360 TABLES Future Value of an Annuity Due of $1 EVAD - (11 +18 - 1] x (1+) 1 01 10100 101 10300 10350 2 2001 2042 204 20756 3 30040909 SO I ONI OOI HILE WE 917 PREE GENE OFT01 OCH ME TO POSE 000 THE W SE 6 0119 SOLS 101 SI PES OSS OROC 180S 823 9129 16 10 IST 7546 DI B SAS 91 LIST SET 1 LOCS 1 0 4 12 1108 12 16 13 4866 14.19 914 15.7220 165457 SER 1891 11 116 5519 51 91 S 1951 CIS I 1961 HOST Stop Store PSGCTE FEITE EINE SEIT MIRESIM ELLELT TE ETE SORS Cottu carott KETE TELEH SIE SICH EILE SIE 51 0 6 SETH 20 ISELLA FORESTER st HET HEERE STITCH O S Sort SET WOOZE DHE SE SE I 16 17.434 3014 19.012119.867 206161.00 11.6075 21.7411 14.414 35.9 17.2119 20.5401 32.750 5.737 17 18 6147 194194204123213363 224144 3.4997 246154238551 2713428412239057 33903645020013 0.47 0 471 1048306 9239941297771167 096 2 SUSEST E ZE ZOETES SEX S10ER SEST O BOS 1 1 610 IZ 61 TE 1 ET 245447 258704 272792 28771 30371420060338653 35.75629557801508270632004710 2 6132766 0902 327 47193 67851 052 0 55 154 15 H 202233923345 21 23 3.1 77.39 2.38 3.3 33.30 .0 37.5053328543 . 2 43.0057 458 43 4 1011 1.38 > 285256 30 50 126709 3.0117 375530030130174.57060113553960815646767789543210 10 11 12 1 30 351327 101841379445000 4900175149 617 91 6419433011101073125910875 1809417093737096141879 40 493752 55 0110 01610068087677601387509 136 135 136 198 1441189 164047313.609 110 11 1 1104 9 4 TABLE 6 Present Value of an Annuity Due of $1 PVAD ) (+ 1902 1901 951 0 36 6 04 704 8.046 9 046 10.0% 11.0% 12.0% 0.0% 0000 100000 100000 100000 100000 100000 100000 100000 100000 1 1 15861010661 2 800611950516CONSI 1961 1961 61 561 00000 100000 100000 100000 100000 100000 100000 100000 100000 1 1611161 HT 6 2161 CEESI9828T060061 606061 0 97 62 594 284612 1 1920 270126 3 4 297040 295588 294156 292742291347299969 19409991210 3 8 15602 3.06 3.59164 485438 4307734.76197 4,71710467305 2 75011 273554271252262005 2.52778 3.5112914 1 41711601611106 3.77509 3.7456 3.72195 6971 167101 16432357710 5 26106 ESES SOS SISOS SOP RET IC CLOTH OF CSST SELOT SHOT 57971 S85343 679348 3 272519 78364 146 .6443 609719600143 650813 75921 747199 73919 6.41719 72304 CS ITS MOLTS TELIES ES5665 6520 NO99 29829 ECOFL SPEEL OL ZA DESEL 10 ET TOOLS T LOL S SLPOT IT SOL'S O S THIS FORTS ESSES COSS ISSTE SOLEILSHES SO LOCO CON 6510U D O CARSD D KEY OF AS DILEE SIST 690 LOCOS SECO COLESO OSO 9 10 65165848593832548 5602916052910214 3.17014 01909 907 3711 60709 2 3638 7.71003741766 7.14457 1933 8.650 1 9347 Il 10.47130 1032118 9.98750 12 113676) 1107112 1076 .75306 3030 931661 1031421 10 253421000155 110 011718.72173 3.763 36000 9.760415292 330641209254 53687 I BONS60L LISE II HSLS II 1106 II SOSTI LOSS SBIT 1986 258196 6 PE EEI ESTE 11 BIEN 15915 01 NOC II STOLII STOLOIS SOCS II 0962160601 SCOOTED EETSE OLEOS ! 9680I REE!! HOI 968 961 96 168 NOPEST SWLSE 6 06 6 H6 61 056 L POLTES OLLE69 T O E L COCIN COSES LENT SL 1013 013 SCESS SS 0195 292 8185L 9993 S198 16 14.56505 14.34323 13.54926 13.38138 12.93794 12.51741 12.11839 11.79956 11.37946 11.03758 10.71225 10.10791 9.58943 9.06069 3.60608 8.19087 7.81086 5.87547 17 15.71787 15.13126 1457771405500 13.56110 13.0941212 65230 12 2340211 83717 114621611 10590 10.44665 9 9 31256 377837916 797999572956 18 16.5622515 90765 15291371471210 14.10621365132 13.16567 12.70719 1227407 1186461 1147726 10.1632210121649541639021553549 11961377453 19 1739827 1667756 15992031535316 1475351 14 1895 13.65930 13 15999 12689591224607 11 82760 11 05909 10.37189975563 920141 870169824967 531219 2018 22001 1742517 16.67346 15975591532380147094 14.13394 13.59329 13.08532 12 60765 12 15812 1133560 10.60360 9.95011 930192 883929 3.36578584350 IZ SSS' SPISELI 1900 16859 ISE OLUSI COAST TE PLODY S'HI Hort STOL SI S 9' SSESS HOT 25 22:24339 21.03041 199119 I AN 1793554 17.05837 16.24696 15 49548 1479854 14151701355036 12.49933 1152876 10.70661 98414 9.34514 875432 593710 30 2608579 24.3760822.84435 2145355 20.1845 19.03577 17.98371 17.02189 1614107 1533310 1459072 13.27767 12 15841 11.19828 10.36961 9.65011 902181 597472 COSTE O 19 ZE SOBEC HOUSE 65606 EZ OSCI .061651 9922691 FOLOSI 96761 SY 265655 TOEFT6 295E66 ESCOLESSETSRESTI 6