On January 1 2013 the Montgomery company agreed to purchase a building by making six payments. The first three are to be $39000 each and
will be paid on December 31 2013 2014 and 2015. The last three are to be $54000 each and will be paid on December 31 2016 2017 and 2018.
Montgomery borrowed other money at a 12% annual rate. (FV of $1PV
of $1FVA of $1PVA of $1FVAD of $1 andPVAD of $1)(Use appropriate factor(s) from the tables provided.)
At what amount should Montgomery record the note payable and corresponding cost of the building on January 1 2013?
How much interest expense on this note will Montgomery recognize in 2013?