*Note: Please explain clearly your answer. Thank you!

BE 14-10 Note with unrealistic interest rate LO14-30 On January 1, Snipes Construction paid for earth-moving equipment by issuing a $300.000, 3-year note that specified 2% interest to be paid on December 31 of each year. The equipment's retail cash price was unknown, but it was determined that a reasonable interest rate was 5%. At what amount should Snipes record the equipment and the note? What journal entry should it record for the transaction