Multiple Choice - 20 Question; 3 Points Each; 60 Total Points 1. On January 1,...
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Multiple Choice - 20 Question; 3 Points Each; 60 Total Points 1. On January 1, 2016, Cobb Co. received, for the sale of a parcel of land, a ten-year note receivable having a face amount of $2,000,000 and a stated interest rate of 8% payable annually each December 31. The market rate of interest for this type of note is 10%. Present value factors are as follows: At 8% At 10% Present value of 1 for 10 periods 0.46319 0.38554 Present value of an ordinary annuity of 1 for 10 periods 6.71008 6.14457 The amount to record as proceeds for the sale of the land is: a) $2,000,000 b) $1,960,200 c) $1,840,000 d) $1,754,211 e) None of the above
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