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What Amount Should Be Recorded as the Cost of a Machine

Question 115

Multiple Choice

What amount should be recorded as the cost of a machine purchased December 31, 2015, which is to be financed by making 8 annual payments of $8,000 each beginning December 31, 2016? The applicable interest rate is 8%.


A) $56,000
B) $49,975
C) $85,093
D) $45,973

Correct Answer:

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