Question: On January 1 , 2 0 2 4 , a company acquired land for $ 1 0 . 0 million. The company paid $ 3

On January 1,2024, a company acquired land for $10.0 million. The company paid $3.1 million in cash and signed a 6% note requiring the company to pay the remaining $6.9 million plus interest on December 31,2025. An interest rate of 6% properly reflects the time value of money for this type of loan agreement. For what amount should the company record the purchase of land?
Multiple Choice
$9.4 million
$10.6 million
$10.0 million
$6.9 million

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