On October 31, 2021, XYZ Corporation (an equipment manufacturer) sold equipment that cost $150,000 ABC Company (a construction company). The agreement stipulated that ABC would make five payments of $60,000 (including interest) annually on October 31. The first note payment is to be made on October 31, 2021. Assuming that a prevailing interest rate of 6% applies to this contract:

n =5 interest rate= 6%

Prepare the journal entry for XYZ to record sale of the equipment on 10/31/21.

Prepare the journal entry(s) for XYZ for year ended 12/31/22, if any, associated with this sale of the equipment

Prepare the entry for the receipt of payment on 10/31/2022 for XYZ if the company does not use reversing entries.

Prepare the journal entry for ABC to record the purchase of the equipment on 10/31/21.

Prepare the journal entry for ABC to record the purchase of the equipment on 10/31/21.

What is the impact on XYZ Corporations' net income for the year ending 12/31/21 given a 20% tax rate for this transaction?