Use the Following 8% Interest Factors for Questions -What Amount Should Be Recorded as the Cost of a

question 89

Multiple Choice

Use the following 8% interest factors for questions . $\begin{array}{lll}&\text { Present Value of}&\text {Future Value of }\\&\text {Ordinary Annuity }&\text {Ordinary Annuity }\\\hline 7 \text { periods } & 5.2064 & 8.92280 \\8 \text { periods } & 5.7466 & 10.63663 \\9 \text { periods } & 6.2469 & 12.48756\end{array}$
-What amount should be recorded as the cost of a machine purchased December 31, 2006, which is to be financed by making 8 annual payments of $6,000 each beginning December 31, 2007? The applicable interest rate is 8%.

• A)$42,000
• B)$37,481
• C)$63,820
• D)$34,480

Understand the legal responsibilities and duties of accountants under the Securities Act of 1933 and other relevant laws.

Recognize the importance of professional care and integrity in auditing and accounting practices.

Differentiate between negligence, fraud, and breach of contract in a professional context.

Understand the conditions under which professionals can be held liable for their actions and the defenses available to them.

---

Definitions:

Trade

The exchange of goods or services between individuals, businesses, or countries.

World Price

The worldwide market rate of a product or service, shaped by the global conditions of supply and demand.

Import

The act of bringing goods or services into one country from another for sale or use, which can impact domestic markets and industries.

Export

The act of selling goods or services produced in one country to another country.