h On January 1, 2020, Sidelines Company purchases equipment with an estimated 5-year useful life by making a $6,500 cash

[answerhappygod]

H On January 1 2020 Sidelines Company Purchases Equipment With An Estimated 5 Year Useful Life By Making A 6 500 Cash 1 (88.67 KiB) Viewed 84 times

h On January 1, 2020, Sidelines Company purchases equipment with an estimated 5-year useful life by making a $6,500 cash payment and issuing a noninterset-bearing note for $30,000 due in two years. The fair value of the the equipment is unknown. An 12% annual interest rate is typical of this transaction. The present value factor of $1 for i=12% and n=2 is 0.79719. The company uses the effective interest method to amortize interest expense and the straight-line method to estimate depreciation expense. The residual value of the equipment is zero. The balance of discount on note payable that the company should report in its December, 31, 2020 balance sheet is O $0. O $6,084. O $3,214. O $2,870.