Main squeeze has continued to expand rapidly and over the past two years has done extremely well. They purchased a new van for operations on June 1st 2020. The purchase price was $64,545 plus tax of 10%. Not included in the purchase price was a delivery charge of $2,370, and a logo application worth $980. Main Squeeze also purchased additional spare parts that will likely need to be used in future repairs but currently are not needed to operate the vehicle for $3,400. Main Squeeze made a down payment of $10,000 in cash on the Van and paid for the remainder of the items in cash as well. The remainder of the on the purchase price (including tax) was financed with a note(loan), payable in four equal installments on each June 1, with the first payment to be made on June 1, 2021. The interest rate is 7% per year on the unpaid balance. Each payment will include interest plus principle. 1. What is the value Main Squeeze should record the Van (asset) at? Justify your decision. 2. Compute the amount of equal payments Main Squeeze must make. 3. What is the total amount of interest that Main Squeeze will pay over the four years? 4. Complete the schedule below (you may use excel, or transpose into a table in a word processor.) Debt Payment Schedule Date Cash Payment Interest Expense Decrease in Principal Unpaid Principal 6/1/2020 6/1/2021 6/1/2022 6/1/2023 6/1/2024 Totals 5. Explain why the amount of interest decreases each year 6. This purchase is financed with a note payable (debt) what is the other way that that capital could have been acquired for this purchase? What are the disadvantages of using this other way of generating capital? 7. What is the effect of the note payable on the Debt to Equity Ratio on June 1st 2020? And then on June 1, 2021