Problem $5-2($Algo$)$ Present and future value LO$5-7,5-8,5-10]$

Stone Company is facing several decisions regarding investing and financing activities. Address each decision independently.

On June $30,2024,$ the Stone Company purchased equipment from Paper Corporation. Stone agreed to pay $$30,000$ on the

purchase date and the balance in five annual installments of $$7,000$ on each June $30$ beginning June $30,2025.$ Assuming that

an interest rate of $12\%$ properly reflects the time value of money in this situation, at what amount should Stone value the

equipment?

Stone needs to accumulate sufficient funds to pay a $$600,000$ debt that comes due on December $31,2029.$ The company will

accumulate the funds by making five equal annual deposits to an account paying $8\%$ interest compounded annually. Determine

the required annual deposit if the first deposit is made on December $31,2024.$

On January $1,2024,$ Stone leased an office building. Terms of the lease require Stone to make $20$ annual lease payments of

$$140,000$ beginning on January $1,2024.$ A $12\%$ interest rate is implicit in the lease agreement. At what amount should Stone

record the lease liability on January $1,2024,$ before any lease payments are made?

Note: For all requirements, Use tables, Excel, or a financial calculator. $(FV$ of $$1,PV$ of $$1,$FVA of $$1,$PVA of $$1,$FVAD of $$1$ and PVAD

of $$1$

Answer is complete but not entirely correct.

Complete this question by entering your answers in the tabs below.

On June $30,2024,$ the Stone Company purchased equipment from Paper Corporation. Stone agreed to pay $$30,000$ on the

purchase date and the balance in five annual installments of $$7,000$ on each June $30$ beginning June $30,2025.$ Assuming

that an interest rate of $12\%$ properly reflects the time value of money in this situation, at what amount should Stone value

the equipment?

Note: Round your final answers to nearest whole dollar amount.

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