ACME Ltd. acquired a new machine on May 1, 2021 paying $200,000 cash and the rest with a 3-year, non-interest bearing note with a maturity value of $600,000 on April 30, 2024. The company can borrow money at an annual rate of 5%. The machine should be recorded at a cost of: A. A $800,000 B. $600,000 c. $890,000 D. $718,400 The interest expense that should be reported on the statement of earnings for the fiscal year ending on April 30, 2022 equals A $25,920 B. $30,000 c. $35,920 D. Zero because the note payable is a non-interest bearing