Question 8 Cullumber Inc. decided to purchase equipment from Central Ontario Industries on January 2, 2020, to expand its production capacity to meet customers' demand for its product. Cullumber issued a $857,000, 4-year, non-interest-bearing note to Central Ontario for the new equipment when the prevailing market interest rate for obligations of this nature was 11%. The company will pay off the note in 4 $214,250 instalments due at the end of each year of the note's life. (The tables in this problem are to be used as a reference for this problem.) Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Prepare the journal entry at the date of purchase. Calculate the purchase price using any of the three methods (tablets, financial calculator or Excel). (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Round factor values to s decimal places, ed. 1.25124 and final answers to 0 decimal places, c.9. 5,275.) Date Account Titles and Explanation Debit Credit Jan. 2, 2020 SUONIT ANSWER Attempts: 0 of 1 used