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Rocky Company acquired a machine on June 30, 2018 and gave the vendor a $15,000 cash...

Rocky Company acquired a machine on June 30, 2018 and gave the vendor a $15,000 cash down payment and financed the balance with a non-interest bearing note calling for four semi-annual payments of $20,000 each beginning on December 31, 2018. The effective rate of interest was 12% APR. Additional costs incurred were $2,500 for transportation, $4,000 for installation, and $780 for uninsured damages that were incurred during the installation of the machine.
Use the following Present Value tables to determine the Historical Cost of the Machine: $_______________________
3% 6% 12%
Present Value of Ordinary Annuity of $1 for 4 periods 3.71 3.46 3.04
Present Value of Ordinary Annuity of $1 for 8 periods 7.02 6.21 4.96
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