On June 30, 2016, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to...
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Accounting
On June 30, 2016, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $12,000 on the purchase date and the balance in six annual installments of $10,000 on each June 30 beginning June 30, 2017. Assuming that an interest rate of 12% properly reflects the time value of money in this situation, at what amount should Johnstone value the equipment?
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