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Gilmores Clothes purchased some equipment by issuing a three-year 6% note for $8,000 when the interest rate for an obligation of this nature was 8%.

Gilmores Clothes purchased some equipment by issuing a three-year 6% note for $8,000 when the interest rate for an obligation of this nature was 8%. The interest is payable annually. Actuarial information for three periods follows:

6%

8%

Future amount of 1

1.191016

1.259712

Future amount of annuity of 1

3.183600

3.246400

Present value of 1

0.839619

0.793832

Present value of annuity of 1

2.673012

2.577097

At the date of purchase, what amount should be debited to Equipment?

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