Problem 2 (10.5 marks) On January 2, 2020, MLT Inc. acquires a piece of equipment for a list price of $420,000. MLT Inc. pays $40,000 immediately and writes a note for the remainder. Annual interest is 4% and principal of the note is payable in 7 years. MLT Inc's incremental borrowing rate is 5%, while the seller's incremental borrowing rate is 6%. MLT Inc is a public company. It depreciates its equipment using the diminishing balance method at 20%. The equipment's residual value is $60,000 at the end of its useful life. Required: A) Prepare all required journal entries for the years 2020 and 2021. B) Determine the Asset's net book value on January 1, 2025. C) Determine the note payable carrying value on January 1, 2025