Answered

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Longshore Group bought a piece of equipment for use in its operations under the following terms: 5 annual payments of $64,000 for the equipment, including interest. Although the list price of the equipment was $315,000, Longshore Group could have bought it for $300,000 cash. Salvage value is $20,000. Which amount should Longshore Group use to record the purchase of the machine on its books

Sagot :

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Answer:

$300,000

Explanation:

Calculation for Which amount should Longshore Group use to record the purchase of the machine on its books

Amount to record machine purchased=($64,000*5 annual payment)-$20,000

Amount to record machine purchased=$320,000-$20,000

Amount to record machine purchased=$300,000

Therefore the amount that Longshore Group should use to record the purchase of the machine on its books is $300,000

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