Remy Purchases a New Machine by Issuing an $18, 000

question 87

Multiple Choice

Remy purchases a new machine by issuing an $18, 000 three-year note.The company will pay off the obligation by paying $6, 000 at the end of each year.The market rate for obligations of this type is 8%.The present value of an annuity at 8% for three periods is 2.577097.The machine will be recorded at a cost of

• A)$ 6, 000.00
• B)$ 9, 462.58
• C)$15, 462.58
• D)$18, 000.00

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Definitions:

Twin Studies

A research method used in psychology and genetics to determine the contribution of genetics versus environment on human development, behavior, and health by comparing monozygotic (identical) and dizygotic (fraternal) twins.

Monozygotic Twins

Identical twins that develop from a single fertilized egg and share the same genetic material.

Dizygotic Twins

also known as fraternal twins, are siblings that develop from two different eggs fertilized by two different sperm cells, sharing about 50% of their DNA.

Kinship Study

A research approach used to examine the genetic and environmental influences on traits, behaviors, and diseases by studying the similarities and differences among biological and non-biological relatives.