On May 1,2017,SBC INC

question 74

Multiple Choice

On May 1,2017,SBC INC.buys a computer listed for $12,600.The office supply store agrees to accept a $1,600 down payment and a $11,000,three-year note payable at $3,500 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) $1,800
• B) $8,126
• C) $8,553
• D) $11,000

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Definitions:

Exports

Goods or services sent from one country to another for sale or trade.

Imports

The act of bringing goods or services into a country from abroad for sale.

Fiscal Policy

A government's strategy in managing its taxes and spending to influence the nation's economy.

Nondiscretionary

Relating to expenditure or investment decisions bound by specific rules or criteria, not subject to personal judgment or preference.