PO 21 2. On June 1, 2021, Cascade Company purchased equipment from Olympia Corporation. Cascade issued a $36,000, 3-year, zero- interest-bearing note to Olympia for the new equipment. Cascade will pay off the note in three equal installments of $12,000 due at the end of each of the next 3 years. At the date of the transaction, the prevailing market rate of interest for obligations of this nature was 69. Freight costs of $1,725 and installation costs of $4,000 were incurred in completing this transaction. Prepare the 12 journal entry for the purchase of the equipment by Cascade. 23 24 PS 3. On December 1, 2020, Cascade Company purchased several assets of Eugene Shoes Inc., a small shoe manufacturer whose owner was retiring. The purchase amounted to $3,500,000 cash and included the assets listed below. Cascade Company engaged the services of Tennyson Appraisal Inc, an independent appraiser, to determine the fair values of the assets which are also presented below. The appraisal cost was $10,000. Prepare the journal entry for acquisition of the assets by Cascade. Asset Inventory Land Buildings Estimated Fair Value $261,450 $ 186,750 $ 3,286,800 1 4. On March 1, 2021, Cascade Company exchanged a number of used trucks plus cash for vacant land adjacent to its plant site. (The exchange has commercial substance.) Cascade intends to use the land for a parking lot. The trucks had a combined book value of $15,000, as Cascade had recorded $60,000 of accumulated depreciation against these assets. In addition to the trucks, Cascade 51 Company paid $25,000 cash for the land which had a fair value of $48,000. Prepare Cascade's journal entry to record the transaction 52