At the beginning of 2021, 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. (FV of $1. ey of $1. EVA of $1. PVA of S1, FVAD. $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. TABLE 1 Future Value of $! FV - 5110 W 10% 3,048 404 10 7.09 8.04 2.046 18.00 11 13.04 451 SIE WT WE SU So's 955 OOO 0000 000 00010 DOO 00001 BOSCO1 000001 COS101 000101 107000 10000 T10000 111000 112000 120000 100000 112100 1 2 1010 101 101010 10500 1000 107250616092010250 111309 1101010 10451106121 107619 109273 1072 1.12416 114117 115761 117434 1 08000 116640 135971 000121 2001 COIT 1.11100 3800 I ISSIEI ESCORT 01 VISSTE NOT VOT 91001 00001 PUNCT DET SO WIE SI LA 1 ROOTLOL 1016015 OINT 0561 SIIT CE 122501 131010 1.40255 DIEET O SET IDEE CSCSI ZONISI HET ON 1 30047 1446110 1.2004 13303 207100 14093) 150181 6 1061521091144 112616 115909 1908 122926 120112 110226 154010 13704141871 ston 10071 2009 LAST RI 197112 221061 2.03610 230454 SULIT 011201 THOUT POUDRE ET 961 6 HORSE OSCE DECORD THEHT ESE Soft St OLOT PROPET CIE ZE 160 161 1 SORE! OLOT IN LET THOICI LLUENCI DITT GOTT 1 HOST 10 ISST ON ISE OG LIL VI 60561 1 606 ' 61 61 1 9001 C GET hoort tott 01 HERE DHE 185093 199900 Z TOLLE 1. 1700LS WERE 11:06 NACE NI Cat CROT OLE IEEE LIRISE 2.1 2.5312 3.1300 31517847855 3495 X2 OCH GEZET 11 111567 11719 124137 131209 112 145997 15345 16238% 17104 11030 1.89510 12 11363 11952 17:24 1.34014256 131107 100101 19 L 1.90121 201270 19 1389 121355 122261 17 140 138990100307 171220 12.0087 240965 14 11497 12311 13198 1414 1515 1611 1.7168 15191 1993 21140920080 2.575) 151 1250 1450 14400 155 167535 1.300 1267 32134 2.395561.79003 BUSINE CHOC LE CINZ CO KIRCE SHOE 293719 3.17217 3150 417725 431041 4719 4 547347 10 12 15.400 GOCS DE 11 LECT EDHE CODECHE TELE TE C110 104 TY HOTE 16 117 120 372791AM 16047171399 129 2.02217 21827235336254093 SOSY 3.377911024717135393 19.1.2011 139 140 1398 1759 1220 100 2.107 2100260361859 3150 4166151 2009 14 14 10 1997 2.9112 211 2110 2017 3.2014 1300 400 50001 0.7770 OTH COTT WE OT 6T SESOT COST OF USE CHILL MESTO 2009 FEE NO GST 996051 FHEN KOEL 1961 1 SSERO WICZ it . OPSIE GOCEEEE AGE RECOIT M6 1219136105151567 14794 600 000 73320042060 614056 10 740025 53243 140 139 1362700543 336613 14 6 86210 OCH 1200000 30 470 15601209157242736073.2340 11473194 499 70133410 66 1368174142SD 2.99 10 A 1140 2004 2003 2004 1993 102 6 7 13 10 25 40 7221 691) 3.0 SHERS
