Equipment was purchased for

$36,000

by issuing a 5-year note payable to the seller for

$20,000

, the balance paid in cash. The note pays

5%

interest annually on January 1 st. For expense purposes, the equipment was given a 6-year life with no salvage value. The company will use the straight-line method to depreciate all its fixed assets.

Equipment was purchased for $36,000 by issuing a 5 -year note payable to the seller for $20,000, the balance paid in cash. The note pays 5% interest annually on January 1 st. For expense purposes, the equipment was given a 6 -year life with no salvage value. The company will use the straight-line method to depreciate all its fixed assets