Frasquita acquired equipment from the manufacturer on 6/30/2021 and gave a noninterest-bearing note in exchange. Frasquita is obligated to pay $578,000 on 4/30/2022 to satisfy the obligation in full. If Frasquita accrued interest of $24,000 on the note in its 2021 year-end financial statements, what amount would it have recorded the equipment for on 6/30/2021?

Multiple Choice

• $522,000.

• $578,000.

• $498,000.

• $538,000.