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  1. business
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  3. on january 1, boston company completed the followi

On January 1, Boston Company completed the following transactions (use a 7% annual interest rate...

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Accounting

On January 1, Boston Company completed the following transactions (use a 7% annual interest rate for all transactions): (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.)

  1. Promised to pay a fixed amount of $6,400 at the end of each year for seven years and a one-time payment of $115,800 at the end of the 7th year.
  2. Established a plant remodeling fund of $490,600 to be available at the end of Year 8. A single sum that will grow to $490,600 will be deposited on January 1 of this year.
  3. Agreed to pay a severance package to a discharged employee. The company will pay $75,400 at the end of the first year, $112,900 at the end of the second year, and $150,400 at the end of the third year.
  4. Purchased a $172,000 machine on January 1 of this year for $34,400 cash. A five-year note is signed for the balance. The note will be paid in five equal year-end payments starting on December 31 of this year.

Required:

1. In transaction (a), determine the present value of the debt. (Round your answer to nearest whole dollar.)

Present Value ______________

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