Reference no: EM132420287

1. On January 1, 2020, Marigold Corporation sold a building that cost $261,490 and that had accumulated depreciation of $102,790 on the date of sale. Marigold received as consideration a $251,490 non-interest-bearing note due on January 1, 2023. 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, 2020, was 9%. At what amount should the gain from the sale of the building be reported? 
2. On January 1, 2020, Marigold Corporation purchased 335 of the $1,000 face value, 9%, 10-year bonds of Walters Inc. The bonds mature on January 1, 2030, and pay interest annually beginning January 1, 2021. Marigold purchased the bonds to yield 11%. How much did Marigold pay for the bonds? 
3. Marigold Corporation bought a new machine and agreed to pay for it in equal annual installments of $4,580 at the end of each of the next 10 years. Assuming that a prevailing interest rate of 8% applies to this contract, how much should Marigold record as the cost of the machine? 
4. Marigold Corporation purchased a special tractor on December 31, 2020. The purchase agreement stipulated that Marigold should pay $21,610 at the time of purchase and $4,790 at the end of each of the next 8 years. The tractor should be recorded on December 31, 2020, at what amount, assuming an appropriate interest rate of 12%?
5. Marigold Corporation wants to withdraw $111,440 (including principal) from an investment fund at the end of each year for 9 years. What should be the required initial investment at the beginning of the first year if the fund earns 11%?