Ivanhoe Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2020. The terms of acquisition for each truck are described below.

Truck #2 has a list price of $58,400and is acquired for a down payment of $7,300cash and a zero-interest-bearing note with a face amount of $51,100. The note is due April 1, 2021. Ivanhoe would normally have to pay interest at a rate of9% for such a borrowing, and the dealership has an incremental borrowing rate of8%.

Can you help me calculate the discount on notes payable and the truck cost?

Trucks ?

Discount on Notes Payable ?

Cash $7300

Notes Payable $51,100