Question : 71. Short Company purchased land by paying $10,000 cash the purchase : 1228554

71. Short Company purchased land by paying $10,000 cash on the purchase date and agreeing to pay $10,000 for each of the next ten years beginning one-year from the purchase date. Short’s incremental borrowing rate is 10%. What amount of liability would be reported on the balance sheet as of the purchase date, after the initial $10,000 payment was made? 
A. $100,000
B. $38,550
C. $61,446
D. $71,446

72. Short Company purchased land by paying $10,000 cash on the purchase date and agreeing to pay $10,000 for each of the next ten years beginning one-year from the purchase date. Short’s incremental borrowing rate is 10%. At what amount would the land be reported at on the balance sheet? 
A. $100,000
B. $38,550
C. $110,000
D. $71,446

73. Libby Company purchased equipment by paying $5,000 cash on the purchase date and agreeing to pay $5,000 every six months during the next four years; the first payment is due six months after the purchase date. Libby’s incremental borrowing rate is 8%. At what amount would the equipment be reported at on the balance sheet as of the purchase date? 
A. $45,000
B. $38,664
C. $33,664
D. $40,000

74. Libby Company purchased equipment by paying $5,000 cash on the purchase date and agreeing to pay $5,000 every six months during the next four years; the first payment is due six months after the purchase date. Libby’s incremental borrowing rate is 8%. At what amount would the liability be reported on the balance sheet as of the purchase date, after the initial $5,000 payment was made? 
A. $45,000
B. $33,664
C. $38,664
D. $40,000

75. 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%. At what amount would the liability be reported at on the balance sheet as of the purchase date, after the initial $10,000 payment was made? 
A. $44,633
B. $50,000
C. $54,633
D. $60,000

76. 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%. At what amount would the vehicle be reported at on the balance sheet as of the purchase date? 
A. $44,633
B. $50,000
C. $54,633
D. $60,000

77. Rusty Corporation purchased a rust-inhibiting machine by paying $50,000 cash on the purchase date and agreeing to pay $10,000 every three months during the next two years; the first payment is due three months after the purchase date. Rusty’s incremental borrowing rate is 8%. At what amount would the machine be reported at on the balance sheet as of the purchase date? 
A. $123,255
B. $130,000
C. $80,000
D. $73,255

78. Rusty Corporation purchased a rust-inhibiting machine by paying $50,000 cash on the purchase date and agreeing to pay $10,000 every three months during the next two years; the first payment is due three months after the purchase date. Rusty’s incremental borrowing rate is 8%. At what amount would the liability be reported at on the balance sheet as of the purchase date, after the initial $50,000 payment was made? 
A. $123,255
B. $130,000
C. $80,000
D. $73,255

79. Rachel Corporation purchased a building by paying $90,000 cash on the purchase date, agreeing to pay $50,000 every year for the next nine years and $100,000 ten years from the purchase date; the first payment is due one year after the purchase date. Rachel’s incremental borrowing rate is 10%. At what amount would the building be reported at on the balance sheet as of the purchase date? 
A. $326,500
B. $460,000
C. $287,950
D. $416,500

80. Rachel Corporation purchased a building by paying $90,000 cash on the purchase date, agreeing to pay $50,000 every year for the next nine years and $100,000 ten years from the purchase date; the first payment is due one year after the purchase date. Rachel’s incremental borrowing rate is 10%. At what amount would the liability be reported at on the balance sheet as of the purchase date, after the initial $90,000 payment was made? 
A. $326,500
B. $460,000
C. $287,950
D. $416,500