Libby Company purchased equipment by paying $6000 cash on thepurchase date and a

Libby Company purchased equipment by paying $6000 cash on thepurchase date and agreeing to pay $6000 every six months duringthe next four years; the first payment is due six months after thepurchase date. Libbys incremental borrowing rate is 10%. At whatamount would the liability be reported on the balance sheet as ofthe purchase date after the initial $6000 payment was made? (UseTable 2) (Round PV Factor to 4 decimal places and final answer tonearest dollar amount.)