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What amount should Chang report as note receivable

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Question - On December 30, 2017, Chang Co. sold a machine to Door Co. in exchange for a noninterest-bearing note requiring ten annual payments of $10,000. Door made the first payment on December 30, 2017. The market interest rate for similar notes at the date of issuance was 8%. Information on present value factors is as follows:

Period Present value of $1 at 8%Present value of ordinary annuity of $1 at 8%90.506.25100.466.71

In its December 31, 2017, balance sheet, what amount should Chang report as note receivable?

a. $67,100

b. $45,000

c. $46,000

d. $62,500

Reference no: EM132569679

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