Libby Company purchased equipment by paying $6,500 cash on the purchase date and agreeing to...
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Accounting
Libby Company purchased equipment by paying $6,500 cash on the purchase date and agreeing to pay $6,500 every six months during the next four years. The first payment is due six months after the purchase date. Libby's incremental borrowing rate is 8%. The liability reported on the balance sheet as of the purchase date, after the initial $6,500 payment was made, is closest to$52,000.
$58,500.
$43,763.
$50,263.
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