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On January 2, 2020, Zimbabwe Corp. purchases a new machine. The company makes a $3,000 cash down payment, and agrees to pay four annual instalments
On January 2, 2020, Zimbabwe Corp. purchases a new machine. The company makes a $3,000 cash down payment, and agrees to pay four annual instalments of $4,000 each, starting July 1, 2020, signing a non-interest-bearing note to this effect. The cash equivalent price of the machine is not known, but the appropriate interest rate for this type of transaction is 8% p.a. Rounding to the nearest dollar (if necessary), Zimbabwe should record the cost of the machine at
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