What Amount Should Be Recorded as the Cost of a Machine

question 94

Multiple Choice

What amount should be recorded as the cost of a machine purchased December 31, 2015, which is to be financed by making 8 annual payments of $8,000 each beginning December 31, 2016? The applicable interest rate is 8%.

• A)$56,000
• B)$49,975
• C)$85,093
• D)$45,973

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Definitions:

Neurotransmitters

Chemical messengers that transmit signals across a chemical synapse from one neuron to another 'target' neuron, muscle cell, or gland cell.

Neuron

The essential component of the nervous system, a nerve cell, is tasked with the transmission of information within the body.

SIDS (Sudden Infant Death Syndrome)

The sudden and unexplained death of a seemingly healthy baby, usually during sleep, in the first year of life.

Medulla

The inner region of an organ or tissue, or specifically the lower part of the brainstem that controls vital functions such as heart rate and breathing.