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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
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
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