At Westonci.ca, we connect you with the best answers from a community of experienced and knowledgeable individuals. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts.

The Holdsworth Corporation has purchased an executive jet. The company has agreed to pay $201,100 per year for the next 10 years and an additional $2,011,000 at the end of the 10th year. The seller of the jet is charging 8% annual interest.

Required:
Determine the liability that would be recorded by Jenkins.


Sagot :

Answer:

$2,280,872

Explanation:

The computation of the liability that would be recorded by Jenkins is shown below

= Payment per year × annuity factor at 8% for 10 years + extra amount × discounting factor at 8% and 10 year

= $201,100 × 6.71008 + $2,011,000 × 0.46319

= $1,349,397 + $931,475

= $2,280,872

hence, the liability is $2,280,872

Thanks for using our service. We aim to provide the most accurate answers for all your queries. Visit us again for more insights. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Your questions are important to us at Westonci.ca. Visit again for expert answers and reliable information.