Chi Consulting Purchased a New Computer System and in Return

question 86

Multiple Choice

Chi Consulting purchased a new computer system and in return signed a three-year $30,000 non-interest-bearing note payable.An investigation by the company's accountant revealed that similar notes have market rates of interest around 8%.At what value should the note payable be initially recorded on Chi's financial statements?

• A)$30,000
• B)$10,000
• C)$25,771
• D)$23,815