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9) On January 1, 2020, T-Ball Co. purchased equipment for a $600,000 zero-interest-bearing note due on January 1, 2023 (3 years). The prevailing rate of

9) On January 1, 2020, T-Ball Co. purchased equipment for a $600,000 zero-interest-bearing note due on January 1, 2023 (3 years). The prevailing rate of interest for a note of this type at January 1, 2020 was 10%. The equipment is expected to last ten years with no salvage value. What amount should T-Ball record the depreciation for this machinery assuming no residual value?

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$0

$45,079

$40,571

$60,000

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