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Libby Company purchased equipment by paying $5,200 cash on the purchase date and agreed to pay $5,200 every six months during

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Answer #1

Answer : $ 36,502.

Present value of the liability = $ 5,200 + $ 5,200 * [ { 1 - ( 1 / 1.03 ) 8 } / 0.03 ] = $ 41,702.44

After the initial $ 5,200 is made, the liability would be reported at $ 41,702.44 - $ 5,200 = $ 36,502.44

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