Problem based on appropriate interest rate


Fishbone Corporation purchased a special tractor on December 31, 2010. The purchase agreement stipulated that Fishbone should pay $21,600 at the time of purchase and $5,600 at the end of each of the next 12 years. The tractor should be recorded on December 31, 2010, at what amount, assuming an appropriate interest rate of 11%?

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Accounting Basics: Problem based on appropriate interest rate
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