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On January 1, 2024, a company acquired land for $7.4 million. The company paid $1.8...

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Accounting

On January 1, 2024, a company acquired land for $7.4 million. The company paid $1.8 million in cash and signed a 6% note requiring the company to pay the remaining $5.6 million plus interest on December 31, 2025. An interest rate of 6% properly reflects the time value of money for this type of loan agreement. For what amount should the company record the purchase of land?

$6.8 million

$8.0 million

$7.4 million

$5.6 million

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