Rae Company purchased a new vehicle by paying $10,000 cash on the purchase date and agreeing to pay $3,000 every three months during the next five years.The first payment is due three months after the purchase date.Rae's incremental borrowing rate is 12%.(FV of $1,PV of $1,FVA of $1,and PVA of $1)(Use the appropriate factor(s)from the tables provided. )
- The vehicle reported on the balance sheet as of the purchase date is closest to:
A)$44,633.
B)$50,000.
C)$54,632.
D)$60,000.

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The Answer of Rae Company purchased a new vehicle by paying $10,000 cash on the purchase date and agreeing to pay $3,000 every three months during the next five years.The first payment is due three months after the purchase date.Rae's incremental borrowing rate is 12%.(FV of $1,PV of $1,FVA of $1,and PVA of $1)(Use the appropriate factor(s)from the tables provided. )
- The vehicle reported on the balance sheet as of the purchase date is closest to:
A)$44,633.
B)$50,000.
C)$54,632.
D)$60,000.

Rae Company Purchased a New Vehicle by Paying $10,000 Cash