At the beginning of $2024,$ VHF Industries acquired a machine with a fair value of $$8,450,250$ by issuing a two$-$year, noninterest$-$

bearing note in the face amount of $$10$ million. The note is payable in two annual installments of $$5$ million at the end of each year.

Required:

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

to $4.$ Prepare the necessary journal entries.

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.

Note: Use tables, Excel, or a financial calculator. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$

Answer is not complete.

Complete this question by entering your answers in the tabs below.

Req $1$

Req $2$ to $4$

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.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Enter your

answers in whole dollar.