How do you calculate the carrying amount. I believe the PVF is 6.334566 Image transcription text
Question:
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P9-3 (Static) Computing Equal Periodic Debt Payments, and Completing a Schedule L09-2 Alimentex Inc. develops. manufactures. and markets a wide range of fruit and vegetabiejuices and drinks as well as specialty food products. such as fondIie broths and sauces, soups, gravies, pestos, and sauces for pasta and pizza. Use Table 8C.1, Table 8C.2. (Round time value factor to 4 decimal places.) The company's long-term debt includes the following obligations: ' ""' '2 ' ' ' As of Dec. As of Dec. 31, 2022 31. 2021 (In thousands of E,_T_Long—Term-Debt u dollars) 1. Obligation related to the acquisition of equipment, 5.595, payable starting in December 2020 in eight equal annual blended instalments of $262,212 through 2027. $1,126 $1,310 2. Obligation under a lease for distribution equipment, 9.79s, payable starting in December 2021 in 11 equal semi—annual blended instalments of $44,998, through 293 350 December 2026. Required: 1. Assume that the equipment related to the first obligation was acquired on January 1, 2020 and that the first payment of $262,212 was made on December 31, 2020. Verify that the carrying amount reported by the company as of December 31, 2022 represents the present value ofthe remaining annual payments. (Note: Tables 8C.1 and 8C2 do not include the 55 percent interest rate. Use Microsoft Excel or a calculator to compute the present value of future payments.) (Enter your answer in dollars not in thousands of dollars rounded to the nearest whole dollar.)
Cost Management Accounting and Control
ISBN: 978-0324559675
6th Edition
Authors: Don R. Hansen, Maryanne M. Mowen, Liming Guan