Rusty Corporation Purchased a Rust-Inhibiting Machine by Paying $50,000 Cash

Rusty Corporation purchased a rust-inhibiting machine by paying $50,000 cash on the purchase date and agreeing to pay $10,000 every three months during the next two years.The first payment is due three months after the purchase date.Rusty's incremental borrowing rate is 8%.(FV of $1,PV of $1,FVA of $1,and PVA of $1) (Use the appropriate factor(s) from the tables provided. )
-The machine reported on the balance sheet as of the purchase date is closest to:

A) $123,255.
B) $130,000.
C) $80,000.
D) $73,255.

Correct Answer:

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