Calculate the amount at which barrett should record the note

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Reference no: EM13139872

On January 1, 2011, The Barrett Company purchased merchandise from a supplier. Payment was a noninterest-bearing note requiring five annual payments of $25,000 on each December 31 beginning on December 31, 2011, and a lump-sum payment of $80,000 on December 31, 2015. A 10% interest rate properly reflects the time value of money in this situation.

Required:

Calculate the amount at which Barrett should record the note payable and corresponding merchandise purchased on January 1, 2011. (Use Table 2 and Table 4) (Round "PV Factor" to 5 decimal places and final answer to the nearest dollar amount. Omit the "$" sign in your response.)

Reference no: EM13139872

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