Jet Air Inc. contracted with Systems Plus Inc. to manufacture heavy equipment. The equipment was completed and ready for use On January 1, 2020. Jet Air Inc. issued a $2,000,000 note to Systems Plus Inc. in exchange for the equipment that required 6% interest payments annually over 3 years on December 31 of each year. Although the fair value of the customized heavy equipment was not reasonably determinable, it was determined that 8% was a reasonable rate of interest for such a transaction. Present value of single SI Table 2) Present value of Si ordinary annuity (Table 4) 3 6 3 6 0.88900 0.79031 5.24214 4.00". 5.00 2.77509 2.72325 0.74622 0.86384 0.83962 0.70496 6.00 7.00 5.07569 4.91732 4.76654 4.62288 0.81630 0.66634 8.00% 0.63017 2.67301 2.62432 2.57710 2.53129 2.48685 0.79383 0.77218 9.00 0.59627 4.48592 10.00% 0.75131 0.56447 4.35526 The equipment should be recorded on January 1,2020 at O $2,000,000 $1,895,157 $2,106,920 $1,896,912