On May 1,2014,SBC INC

question 46

Multiple Choice

On May 1,2014,SBC INC.buys a photocopier listed for $2,600.The office supply store agrees to accept a $800 down payment and a $2,100,three-year note payable at $798 per year.The company's banker has suggested that an appropriate market rate is 11% per annum for loans that mature in one year or less and 14% for loans with longer maturities.At what amount will the note be recorded at in the accounting records?

• A)$1,853
• B)$1,950
• C)$2,100
• D)$2,600

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Definitions:

Auditory Canal

Short tunnel that runs from the pinna to the eardrum.

Eardrum

A thin membrane that separates the outer ear from the middle ear and vibrates in response to sound waves, aiding in the process of hearing.

Pinna

The visible part of the ear that resides outside of the head, which plays a role in capturing sound waves and directing them into the ear canal.

Red-Green Color Blindness

A common form of color vision deficiency where individuals have difficulty distinguishing between red and green hues.