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Buffalo Corporation purchased a truck by issuing an $86,400, 4-year, zero-interest-bearing note to Equinox Inc. The market rate of interest for obligations of this nature

Buffalo Corporation purchased a truck by issuing an $86,400, 4-year, zero-interest-bearing note to Equinox Inc. The market rate of interest for obligations of this nature is 11%.

Prepare the journal entry to record the purchase of this truck.

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