On May 1, 2020, SBC INC

question 61

Multiple Choice

On May 1, 2020, SBC INC. buys a photocopier listed for $2,900. 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)$2,900

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Definitions:

Elemental Symbol

A one or two-letter abbreviation assigned to each chemical element based on its name, often derived from its name in Latin.

Lead

A heavy, malleable, ductile metal with a low melting point, often used in batteries and protective shielding.

Elemental Symbol

A notation consisting of one or two letters representing a chemical element (e.g., "O" for oxygen, "Fe" for iron).

Phosphorus

A nonmetallic chemical element with the symbol P, essential for life, found in DNA and cell membranes.