What will the carrying value of the liability

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Reference no: EM131495329

OL accquired a machine from TOV Corp. on January 1, 2015. In payment for the $18,000 machine. OL issued a four year installment note to be paid in four equal payments at the end of each year. The payments include interest at the 6% current market rate.

Required:

- Record the payment made on 12/31/16.

- What will the carrying value of the liability be at 12/31/ 16 (following the payment)?

Reference no: EM131495329

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