At the beginning of 2021, VHF Industries acquired a machine with a fair value of $6,074,700 by issuing a four-year, noninterest-bearing note in the face amount of $8 million. The note is payable in four 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 PVAD of $1) (Use appropriate factor(s) from the tables provided.) 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. Answer is not complete. Complete this question by entering your answers the tabs below. Required 1 Required 2 to 4 Required 5 Prepare the necessary journal entries. (If no entries is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollar.) No Date General Journal Debit Credit 1 January 01, 2021 Equipment Discount on notes payable Notes payable 2 2,000,000 X December 31, 202 Notes payable Cash 3 December 31 202 Notes navable At the beginning of 2021, VHF Industries acquired a machine with a fair value of $6,074,700 by issuing a four-year, noninterest-bearing note in the face amount of $8 million. The note is payable in four 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 PVAD of $1) (Use appropriate factor(s) from the tables provided.) 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. Answer is not complete. Complete this question by entering your answers the tabs below. Required 1 Required 2 to 4 Required 5 Prepare the necessary journal entries. (If no entries is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollar.) No Date General Journal Debit Credit 1 January 01, 2021 Equipment Discount on notes payable Notes payable 2 2,000,000 X December 31, 202 Notes payable Cash 3 December 31 202 Notes navable