At January 1, 2021 Cargo Inc acquired equipment by issuing a five year, %150,000 (payable at maturity), 4% note. The market rate of interest for notes of similar risk is 10%

Use the appropriate factor

Required:

1 Record the purchase of the equipment

2 record the interest expense for Dec. 31, 2021

3 record the interest expense for Dec. 31, 2022