On January 1, 2024, the Mountain Company agreed to purchase a building by making six payments. The first three are to be

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On January 1 2024 The Mountain Company Agreed To Purchase A Building By Making Six Payments The First Three Are To Be 1 (31.87 KiB) Viewed 16 times

On January 1, 2024, the Mountain Company agreed to purchase a building by making six payments. The first three are to be $25,000 each, and will be paid on December 31, 2024, 2025, and 2026. The last three are to be $40,000 each and will be paid on December 31, 2027, 2028, and 2029. Mountain borrowed other money at a 10% annual rate. Required: 1. At what amount should Mountain record the note payable and corresponding cost of the building on January 1, 2024? 2. How much interest expense on this note will Mountain recognize in 2024? Note: For all requirements, use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) 1. Amount recorded 2. Interest expense