Note payable and corresponding cost of the building

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Reference no: EM131288663

On January 1, 2016, the Montgomery Company agreed to purchase a building by making six payments. The first three are to be $38,000 each, and will be paid on December 31, 2016, 2017, and 2018. The last three are to be $53,000 each and will be paid on December 31, 2019, 2020, and 2021. Montgomery borrowed other money at a 10% annual rate. At what amount should Montgomery record the note payable and corresponding cost of the building on January 1, 2016?

Reference no: EM131288663

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