At the beginning of $2024,$ VHF Industries acquired a machine with a fair value of $$6,760,200$ by issuing a two$-$year, noninterest$-$bearing note in the face amount of $$8$ million. The note is payable in two annual installments of $$4$ million at the end of each year.

Required:

$1.$What is the effective rate of interest implicit in the agreement?

$2.$ to $4.$ Prepare the necessary journal entries.

$5.$ Suppose the market value of the machine was unknown at the time of purchase, but the market rate of interest for notes of similar risk was $11\%.$ Prepare the journal entry to record the purchase of the machine.