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At the beginning of 2016, VHF Industries acquired a equipment with a fair value of $7,581,580 by issuing a five-year, noninterest-bearing note in the face
At the beginning of 2016, VHF Industries acquired a equipment with a fair value of $7,581,580 by issuing a five-year, noninterest-bearing note in the face amount of $10 million. The note is payable in five annual installments of $2 million at the end of each year. question: Suppose the market value of the equipment was unknown at the time of purchase, but the market rate of interest for notes of similar risk was 9%. Prepare the journal entry to record the purchase of the equipment.
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