Question: What is the answer? A is incorrect 2. Baxter Compamy purchases used equipment from Grant Compamy, issuing a non-interest-bearing, $10,000,5y, nor note in exchange. Bxater

What is the answer?

A is incorrect

2. Baxter Compamy purchases used equipment from Grant Compamy, issuing a non-interest-bearing, $10,000,5y, nor note in exchange. Bxater utes an incrementai berrowing rate of 12%. The present value of $10,000 to be eepaid at the end of five years at 12% is $5,674.27. Baxter Company will record this exchunge wat a. a debit to Cash for $5,674.27. b. a debit to Equipment for 510,000 . c s eredit to Oiscount on Notes Payable for 54,325.73. d. Nane of these choices

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