Question

On October 17, Nikle Company purchased a building and a plot of land for $829,400. The building was valued at $348,348, while the land carried a value of $481,052. Nikle paid $60,700 down in cash and signed a note payable for the balance. What is the amount of the note payable?

a) $60,700
b) $348,348
c) $481,052
d) $768,100

Answer 1

The amount of the note payable is $768,700.

Step-by-step explanation:

The amount of the note payable can be calculated by subtracting the down payment from the total purchase price. In this case, the total purchase price is $829,400 and the down payment is $60,700. So, the note payable is:

Note Payable = Total Purchase Price - Down Payment

Note Payable = $829,400 - $60,700 = $768,700

Therefore, the amount of the note payable is $768,700. The correct option is d) $768,700.