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On January 1, 2021, Rhodes Realty purchased some new office furniture in exchange for a note payable to be paid off in four annual payments

On January 1, 2021, Rhodes Realty purchased some new office furniture in exchange for a note payable to be paid off in four annual payments of $15,000. Each payment includes principal plus interest on the unpaid balance at 7% per year. How much should Rhodes Realty record as the cost of the office furniture at the time of purchase?

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