On January 1, 2017, Aggie Security Systems purchased a new piece of high-tech security equipment. Aggie financed this purchase by making a cash down payment of $8,000 and agreeing to pay $60,000 at the end of 8 years. Assume interest is compounded annually 1. The equipment should be recorded on January 1,2017, at what amount, assuming an appropriate interest rate of 5%. A. $40,620 B. $68,000 C. $46,036 D. $48,620 E. $46,778 2. What is the carrying value of the note on December 31,2018? A. $42,651 B. S53,604 C. $44,682 D. $45,466 E. $44,784 Use the following information to answer the next 2 questions: On January 1,2017, a company purchased land for a future warehouse site. A S50,000 down payment is made on that date. Annual payments of $70,000 for the 7%, 10-year loan are to start on Dec. 31, 2017 3. Determine the total cost to be allocated to the land. A. C. E. Determine the interest expense for 2018 and the carrying value of the note on Dec. 31,2018, after the $517,080 $491,680 S541,680 $750,000 $405,600 4. adjusting entry for interest expense has been made. (Round to the nearest dollar.) 2018 Interest Expense 12/31/18 Carrying Value A. ?. E. $31,927 $35,672 $25,479 $33,829 $47,530 $418,025 $475,270 S319,471 $447,105 S656,530 Payment Interest Expense Reduction of Principle Date Carrying Value Issuance