Answer Happy

16 On July 1, 2021, Markwell Company acquired equipment. Morkwell paid $187.500 in cash on July 1, 2021, and signed a $750,000 noninterest-bearing note for the remaining balance which is due on July 1, 2022. An interest rate of 7% retects the time value of money for this type of loan agreement PV of $1. PVA of S1) (Use appropriate factor(s) from the tables provided.) For what amount will Markwell record the purchase of equipment? 16 02 4802 Multiple Choice O $997,500 $880.817 $788,435 $888,435
Pensacola inc. exchanged old equipment for new equipment in two exchange transactions. Each transaction has commercial substance. Equipment Equipment B old Equipment Book Value Pair Value $73,900 $80,900 $60,900 $54,800 Cash Received $11,500 $10,200 For Equipment A. Pensacola would record the new equipment at: Multiple Choice $73,650 $70.900 $56,900. O $69,400
3 On June 1, 2020, the Crocus Company began construction of a new manufacturing plant. The plant was completed on October 31, 2021. Expenditures on the project were as follows ($ in millions 90 July 1, 2020 October 1, 2020 February 1, 2021 April 1, 2021 September 1, 2021 October 1, 2021 58 66 39 38 24 7:52 On July 1, 2020. Crocus obtained a $106 million construction toon with a 10% interest rate. The loan was outstanding through the end of October, 2021 The company's only other interest-bearing debt was a long-term note for $100 million with an interest rate of 11%. This note was outstanding during all of 2020 and 2021. The company's fiscal year-end is December 31 What is the amount of interest that Crocus should capitalize in 2020, using the specific interest method? Multiple Choice $5.90 million $6.96 million