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On 12-31-15, Acme purchased a machine. Acme signed a $500,000 zero-interest bearing note. The note is payable in full on 12-31-17. Assume an acceptable interest

On 12-31-15, Acme purchased a machine. Acme signed a $500,000 zero-interest bearing note. The note is payable in full on 12-31-17. Assume an acceptable interest rate on similar notes was 4%. On 12-31-15, Acme incurred and paid $18,000 to have the machine installed in its sales office. Acme uses straight-line depreciation, assumes $0 salvage value, and an estimated 10-year useful life for the machine. Prepare the entries Acme should make related to this machine on:

a. 12-31-15.

b. 12-31-16.

c. 12-31-17.

d. 12-31-18.

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