Frasquita acquired equipment from the manufacturer on 6/30/2024 and gave a noninterest-bearing note in exchange. Frasquita is obligated to pay $550,000 on 4/30/2025 to satisfy the obligation in full.

If Frasquita accrued interest of $15,000 on the note in its 2024 year-end financial statements, what amount would it have recorded the equipment for on 6/30/2024?

Multiple Choice

$515,000

$525,000

$550,000

$500,000