Smith Delivery Services bought a truck by paying $44, 000 cash down and signing a $148, 000 non-interest-bearing note due in five years for the balance.Current interest rates were 8%.Actuarial information for five periods at 8% follows:
$\begin{array}{ll}\text{ Amount of 1 }& 1.469\\ \text{ Present value of 1}& 0.680\\ \text{ Amount of annuity of 1 }& 5.867\\ \text{ Present value of annuity of 1 }& 3.993\end{array}$
Required:
Compute the amount that should be charged to the asset account.

Non-interest-bearing Note

A promissory note or loan agreement that does not accrue interest over time, requiring the borrower to repay only the principal amount.

Present Value

The current worth of a future sum of money or stream of cash flows, discounted at a specified rate of return.

Actuarial Information

Data and analyses related to assessing financial risks and uncertainties, typically in the context of insurance and finance, relying on mathematical and statistical methods.