3. Rae Company purchased a new vehicle by paying $10,400 cash on the purchase date...
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Accounting
3. Rae Company purchased a new vehicle by paying $10,400 cash on the purchase date and agreed to pay $3,400 every three months during the next five years. The first payment is due three months after the purchase date. Rae's incremental borrowing rate is 12%. The liability reported on the balance sheet as of the purchase date, after the initial $10,400 payment was made, is closest to:
A. 78,400
B. 68,000
C. 60,983
D. 50,583
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