Question no. 5 10 Ford Inc. plans to acquire an additional machine on January 1, 2020 to meet the growing demand for its product. Stever Company offers to provide the machine to Ford using an option of a down payment of $100,000 in cash and signing a zero-interest bearing note requiring 15 annual payments of $420,716 due at December 31 each year. The prevailing market interest rate for the obligation of similar nature is 10%. Ford agreed to the terms and made the purchase on January 1 of 2020. The machine has useful life of 20 years with no residual value. a) Calculate the total acquisition price of the equipment that would be capitalized. b) Make journal entries for the purchase transaction on January 1, 2020. c) Make the depreciation entry for the equipment on December 31, 2020.