On June 30, 2018 Kimberly Farms purchased custom-made harvesting equipment from a local producer In payment, Kimberly signed a noninterest-bearing note requiring the payment of $61,000 in two years. The fair value of the equipment is not knownbut an % interest rate properly reflects the time value of money for this type of loan agreement (FV of $1. PV of $1. EVA of $1. PVA of $1. FVAD of $1 and PVAD of $1 (Use appropriate factor(s) from the tables provided.) At what amount will Kimberly initially value the equipment? How much interest expense will Kimberly recognize in its income statement for this note for the year ended December 31. 2018? (Round your answers to the nearest dollar value .