On January 1, 2015, Bratios Company Purchases Equipment and Signs

question 25

Multiple Choice

On January 1, 2015, Bratios Company purchases equipment and signs a 6-year mortgage note for $80,000 at 15%. The note will be paid in equal annual installments of $21,139, beginning January 1, 2016. Calculate the balance of the Mortgage Payable account after the payment of the first installment.

• A)$12,000
• B)$58,861
• C)$70,861
• D)$60,351

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Definitions:

Open Innovation

A business model that encourages companies to both use external ideas and inventions in their own business practices and allow their unused internal ideas to be used by other organizations.

External Sources

Information, resources, or support obtained from outside an organization or individual's immediate environment.

External Sources

Information, support, or materials obtained from outside an individual's immediate environment or organization.

Open Innovation

A business strategy that encourages companies to use external as well as internal ideas and paths to market in their innovation activities.