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Estonia Incorporated obtained a $75,000 zero interest bearing note on August 1, 2021. The period was for twelve years, with a present value of $26,665.50.

Estonia Incorporated obtained a $75,000 zero interest bearing note on August 1, 2021. The period was for twelve years, with a present value of $26,665.50. In addition to preparing the journal entry on the issuance date, provide a calculation for the implicit interest rate. (8 marks)

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