At the beginning of 2018, VHF Industries acquired a equipment with a fair value of $8,710,520 by issuing a six-year, noninterest-bearing note in the face amount of $12 million. The note is payable insix annual installments of $2 million at the end of each year.

At the beginning of 2018. VHF Industries acquired a equipment with a fair value of $8,710,520 by issuing a six-year. noninterest-bearing note in the face amount of $12 million. The note is payable in six annual installments of $2 million at the end of each year. [FV of $1. PV of $_1. FVA of $1, PVA of $1. FVAD of $1 and WAD of $_1] {Use appropriate factoris) from the tables providedJ Required: 1. What is the effective rate of interest implicit in the agreement? 2. to 4. Prepare the necessaryjournal entry. 5. 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