Johnson Corporation Bought a New Machine and Agreed to Pay

Johnson Corporation bought a new machine and agreed to pay for it in equal annual installments of $6,000 at the end of each of the next five years. Assume the prevailing interest rate for this type of transaction is 12%. Assume the present value of an ordinary annuity of $1 at 12% for five periods is 3.60. The future amount of an ordinary annuity of $1 at 12% for five periods is 6.35. The present value of $1 at 12% is 0.567. How much should Johnson record as the note payable on the balance sheet if financial statements were prepared today?

A) $17,010
B) $21,600
C) $30,000
D) $38,100