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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
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.
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