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.

Question

04-05-2021
Business

Answered

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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 :

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