BE 10-7 AcquisitionPage 555 cost; noninterest- bearing note L010-3g On June 30, 2018, Kimberly Farms purchased custom-made harvesting equipment from a local producer. In payment, Kimberly signed a noninterest-bearing note requiring the payment of $60,000 in two years. The fair value of the equipment is not known, but an 8% interest rate properly reflects the time value of money for this type of loan agreement. At what amount will Kimberly initially value the equipment? How much interest expense will Kimberly recognize in its income statement for this note for the year ended December 31, 2018 BE 10-8 Acquisition cost; issuance of equity securities 010-4 @ Shackelford Corporation acquired a patent from its founder, Jim Shackelford, in exchange for 50,000 BE7 due 0405,1 point The brief exercise from the book has two requirements, please see below. Requirements. Please show work below. Amount |points $60,000 Initial value of equipment 0.15 85734 $51,440 $51,440 x 8% x | 0.15 Interest expense FYE 12/31/18 $2,058 Additional reauirements Points 3 Record the journal entry to purchase the equipment. Hint: Debit "Discount on NP" 0.30 4 Record journal entry for 12/31/18 interest expense (1/2 year) 0.20 5 Assume that the equipment has a 2-year useful life. Record depreciation expense on 12/31/18 (1/2 year) 0.20