Question

ACC 3300- Intermediate AccountingI Examination II Chapters 4-6 18. (5 Points) On December 30, 2017, AGH, Inc purchased a machine from Grant Corp. in exchange for a zero-interest-beari made on December 30, 2017, and the issuance, the are as follows: ng note requiring eight payments of $150,000. The first payment was others are due annually on December 30. At date of prevailing rate of interest for this type of note was 11% Present value factors Present Value of Present Value of Ordinary AnnuityDueottat11% 5.231 Period Annuityof1a111% A.712 5.712 5.146 On AGH's December 31, 2017 balance sheet, the net note payable to Grant is a. $706,800. b. $771,900 c S785.325. d. $856,800. 19. (5 Points) Perry Corp, reports operating expenses in two categories: (1) selling and (2) general expense accounts: Accounting and legal fees Advertising Freight-out Interest Loss on sale of long-term investments Officers' salaries Rent for office space Sales salaries and commissions $420,000 360,000 225,000 180,000 90,000 540,000 540,000 405,000 One-half of the rented premises is occupied by the sales department How much of the expenses listed above should be included in Perry's selling expenses for 2017? a. $765,000. b, S990.000. C. $1,035,000. d. $1,260,000

Answer 1