Bob's Excavating purchased some equipment by issuing a three-year 6% note for $8,000 when the market rate for an obligation of this nature was 8%. The interest is payable annually. Actuarial information for three periods follows:

	6%	8%
Present value of 1	0.839619	0.793832
Present value of annuity of 1	2.673012	2.577097

At the date of purchase, what amount should be debited to Equipment?

$8,000.00

$6,350.66

$6,716.96

$7,587.66