On March $1,$ Year $1$ a company borrows $$50,000$ by signing a two$-$year note. The note has a $6\%$ annual interest rate and matures on March $1,$ Year $3.$ Interest and principal are paid in cash on the maturity date.

What amount of interest expense would the company report in Year $1?$

$5$

$2$ points

After purchasing and installing the freezer, what is the total amount that Cowboy Ice Cream should have in the equipment account?

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