SPROTT SCHOOL OF BUSINESS BUSI 2001-Intermediate Accounting Assignment 2-Notes Receivable&Inventory Your assignment submission must be typed up in either Word or Excel and uploaded (one file only) to the assignment dropbox before midnight September 30, 2018 Problem 1 On January 2,20x8, the Todd Company acquired a truck with a list price of $400,000. The Todd Company's incremental borrowing rate is 8% (imputed rate). Assume that the truck manufacturer is offering Todd the following terms (each situation is independent For each of the terms, prepare the journal entries for the life of the note. Assume a December 31 year end. Todd company is a publicly accountable company a) Todd Company has to make equal annual payments of principal and interest over b) Todd Company pays the $400,000 in three years. No interest is charged on the c) Todd Company pays the $400,000 in three years. Interest of 3% is charged on the d Todd Company pays $80,000 on the principal at the end of every year, over 5 e Todd Company has to make equal annual payments of principal and interest over five years. Payments are due on December 31 of every year. The interest rate charged is 10% note. note payable on December 31 of every year. years. No interest is charged. five years. The interest rate charged is 4%