On January 1 2017, George Company purchased a new building.  George paid $25,000 as a down payment and issued a long-term note to finance the balance.  The note, which carries an interest rate of 4%, requires George to make annual payments of $55,000 for six years, with the first payment due on December 31, 2017. How would I find out what amount George should record as the cost of the new building ?

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 1PA: On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10%...
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On January 1 2017, George Company purchased a new building.  George paid $25,000 as a down payment and issued a long-term note to finance the balance.  The note, which carries an interest rate of 4%, requires George to make annual payments of $55,000 for six years, with the first payment due on December 31, 2017.

How would I find out what amount George should record as the cost of the new building ?

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