ohnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor (s) from the tables provided.) 1. On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $24,000 on the purchase date and the balance in six annual installments of $7,000 on each June 30 beginning June 30, 2022. Assuming that an interest rate of 10% properly reflects the time value of money in this situation, at what amount should Johnstone value the equipment?
Mars Corp. earned $10,000 in January, but Mars only received $7,000 of that and the other $3,000 will be received in February. Mars only expense was $2,500 for wages. Of this amount, Mars paid $1,000 during January and will pay the remaining $1,500 on February 1st. What is Mars net income for January?
A $7,500
B $6,000
C $9,000
D $4,500
