Respuesta :
Answer:
$105,547
Explanation:
Original cost of machine = $270,000
Machine sold for = $150,000
Book value = $120,000
Down payment = $30,000
$60,000 payable on December 31 each of the next two years .
Present value of an ordinary annuity of 1 at 9% for 2 years = 1.75911
The amount of the notes receivable net of the unamortized discount:
= Amount paid on December 31st × Present value of an ordinary annuity
= $60,000 × 1.75911
= $105,547
The amount of notes receivable net of amortized discount on December 2020 is $ 105,546. The present value of an ordinary annuity is already is given of 1 at 9% for 2 years is 1.75911.
What is present value of an annuity?
The cash value of all future pension payments is called the present value of an annuity. It is important to remember the time value of money when calculating the current value of the annuity because it includes inflation. The discount rate of your annuity also has a significant impact on its current value.
In the information given, present value of an annuity of 1 at 9% for 2 years is given which is 1.75911 and the amount payable for the next 2 years is given is $60,000.
[tex]\rm\,Amount\,of\,notes\,receivable\,net\,of\,amortized\,discount = \rm\,Amount\,payable\,for\,the\,next\,two\,years \times present\,value\,of\,an \,ordinary \,annuity \\\\= \$60,000 \times 1.75911\\\\= \$\,105,546[/tex]
Hence, the amount of notes receivable net of amortized discount is $105,546
To learn more about present value of an annuity, refer to the link:
https://brainly.com/question/25792915
