Recorded at the time of purchase

Assignment Help Accounting Basics

Reference no: EM13258944

On jan 1, 2006, vigeland company completed the following transaction (assume 10% annual interest rate)

a) bought a delivery trucka dn agreed to pay $50000 at end of3 years

b) rented anoffice building and was given the option of paying$10,000 at the end of each of the next 3 years or paying $28,000immediately

c) established a savings account by depositing a single amount that will increase to $40,000 at the end of 7 years

d) decided to deposit a single sum in the bank that will provide 10 equal annual year end payments of $15,000 to a retiredemployee (payments start dec. 31, 2006)
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a) what is the cost of the truck that should be recorded at the time of purchase?
b) which option for the office building should the company select?
c) what single amount must be deposited in this accounton Jan 1, 2006
d) what single sum must be deposited in the bank on Jan. 1.2006

Reference no: EM13258944

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