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Accounting

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Larkspur Corporation bought a new machine and agreed to pay for it in equal annual installments of $5,810 at the end of each of the next 10 years. Assuming that a prevailing interest rate of 6% applies to this contract, how much should Larkspur record as the cost of the machine? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

Cost of the machine to be recorded

$

image

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On January 1, 2017, Larkspur Corporation sold a building that cost $274,380 and that had accumulated depreciation of $105,010 on the date of sale. Larkspur received as consideration a $264,380 non-interest-bearing note due on January 1, 2020. There was no established exchange price for the building, and the note had no ready market. The prevailing rate of interest for a note of this type on January 1, 2017, was 9%. At what amount should the gain from the sale of the building be reported? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

The amount of gain should be reported

$

image

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