[Solved] On October 1,2016,Justine Company Purchased Equipment from Napa Inc

Question 48
Multiple Choice

On October 1,2016,Justine Company purchased equipment from Napa Inc.in exchange for a noninterest-bearing note payable in five equal annual payments of $500,000,beginning Oct 1,2017.Similar borrowings have carried an 11% interest rate.The equipment would be recorded at:

A)$2,500,000.
B)$2,225,000.
C)$1,847,950.
D)$2,115,270.

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