On January 1, 2017, Windsor Corporation sold a building thatcost $254,700 and that had accumulated depreciation of $105,950 onthe date of sale. Windsor received as consideration a $244,700non-interest-bearing note due on January 1, 2020. There was noestablished exchange price for the building, and the note had noready market. The prevailing rate of interest for a note of thistype on January 1, 2017, was 9%. At what amount should the gainfrom the sale of the building be reported? (Roundfactor values to 5 decimal places, e.g. 1.25124 and final answer to0 decimal places, e.g. 458,581.)
On January 1, 2017, Windsor Corporation purchased 350 of the $1,000face value, 9%, 10-year bonds of Walters Inc. The bonds mature onJanuary 1, 2027, and pay interest annually beginning January 1,2018. Windsor purchased the bonds to yield 11%. How much didWindsorpay for the bonds? (Round factor values to 5decimal places, e.g. 1.25124 and final answer to 0 decimal places,e.g. 458,581.)
Windsor Corporation bought a new machine and agreed to pay for itin equal annual installments of $5,280 at the end of each of thenext 10 years. Assuming that a prevailing interest rate of 6%applies to this contract, how much should Windsorrecord as the costof the machine? (Round factor values to 5 decimalplaces, e.g. 1.25124 and final answer to 0 decimal places, e.g.458,581.)
Windsor Corporation purchased a special tractor on December 31,2017. The purchase agreement stipulated that Windsor should pay$19,010 at the time of purchase and $4,500 at the end of each ofthe next 8 years. The tractor should be recorded on December 31,2017, at what amount, assuming an appropriate interest rate of 12%?(Round factor values to 5 decimal places, e.g. 1.25124and final answer to 0 decimal places, e.g.458,581.)
Windsor Corporation wants to withdraw $119,850 (includingprincipal) from an investment fund at the end of each year for 9years. What should be the required initial investment at thebeginning of the first year if the fund earns 11%?(Round factor values to 5 decimal places, e.g. 1.25124and final answer to 0 decimal places, e.g.458,581.)
