Rusty Corporation Purchased a Rust-Inhibiting Machine by Paying $50,000 Cash

question 31

Multiple Choice

Rusty Corporation purchased a rust-inhibiting machine by paying $50,000 cash on the purchase date and agreeing to pay $10,000 every three months during the next two years; the first payment is due three months after the purchase date.Rusty's incremental borrowing rate is 8%.At what amount would the liability be reported at on the balance sheet as of the purchase date,after the initial $50,000 payment was made?

• A)$123,255
• B)$130,000
• C)$80,000
• D)$73,255

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Definitions:

Emotional Conflict

Disputes and disagreements fueled by strong feelings, fears, or misinterpretation of someone's intentions rather than actual differences in thoughts or opinions.

Feelings of Anger

Emotional responses characterized by annoyance, displeasure, or hostility towards someone or something perceived as harmful or threatening.

Lose-lose Conflicts

Situations in conflict resolution where all parties involved suffer losses or negative outcomes.

Avoidance

A conflict management style in which the person pretends that a conflict doesn’t really exist.