Straight Industries purchased a large piece of equipment from Curvy Company on January 1,2019 . Straight Industries signed a note, agreeing to pay Curvy Company $400,000 for the equipment on December 31 , 2021. The market rate of interest for similar notes was 8%. The present value of $400,000 discounted at 8% for three years was $317,532. On January 1,2019 , Straight Industries recorded the purchase with a debit to equipment for $317,532 and a credit to notes payable for $317,532. On December 31,2019 , Straight recorded an adjusting entry to account for interest that had accrued on the note. Assuming no adjusting entries have been made during the year, the interest expense accrued at December 31,2019 is closest to: Multiple Chaice $32,000. $29,693. $27,493. $25,403. after the purchase date. Rae's incremental borrowing rate is 12%. (FV of $1, PV of $1, FVA of $1, and PVA of $1 ) (Use the appropriate factor(s) from the tables provided.) The vehicle reported on the balance sheet as of the purchase date is closest to: Multiple Choice 544,633. 560,000 . $50,000. $54,632