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On January 1, 2017, Zappa Co. exchanged equipment for an $800,000 zero-interest-bearing note due on January 1, 2020. The prevailing rate of interest for a

  1. On January 1, 2017, Zappa Co. exchanged equipment for an $800,000 zero-interest-bearing note due on January 1, 2020. The prevailing rate of interest for a note of this type at January 1, 2017 was 10%. The sales price of the equipment was $600,000 on 1/1/2017. What is the amount of the carrying value of the note on Zappas ledger on January 1, 2018?

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