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Problem IV: (17 points) On April 1, 2023, Dixon Corp. purchased a truck and a machine for a combined cost of $1,500,000. Dixon paid $500,000

Problem IV: (17 points) On April 1, 2023, Dixon Corp. purchased a truck and a machine for a combined cost of $1,500,000. Dixon paid $500,000 in cash and financed the remaining $1,000,000 by issuing a three (3) year, 8% installment note. The note will be paid back in three equal payments beginning on April 1, 2024.

The Company has determined that the truck and machine have fair market values of $90,000 and $1,710,000, respectively, for a combined fair market value of $1,800,000

Part A: Prepare the journal entry Dixon should make to record the acquisition of these two assets. (8 points)

Date

Account

Debit

Credit

4/1/23

(Continued on the next page)

Problem IV (continued)

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