Short Company purchased land by paying $26,000 cash on the purchase date and agreed to...
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Accounting
Short Company purchased land by paying $26,000 cash on the purchase date and agreed to pay $26,000 for each of the next six years beginning one-year from the purchase date. Short's incremental borrowing rate is 14%. On the balance sheet as of the purchase date, after the initial $26,000 payment was made, the liability reported is closest to: (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided.)
$127,105.
$71,072.
$101,105.
$156,000.
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