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Wouldn't this have anything to do with PV of $1? or Fair value? Please be specific. 3. In March, the Cleanway Laundromat bought equipment. Cleanway

image text in transcribedimage text in transcribed Wouldn't this have anything to do with PV of $1? or Fair value? Please be specific.

3. In March, the Cleanway Laundromat bought equipment. Cleanway paid $6,000 down and signed a noninterest-bearing note requiring the payment of $18,000 in nine months. The cash price for this equipment was $23,000. 3.To capitalize the cost of equipment. Equipment (cash price) 23,000 Discount on note payable (difference) 1,000 Cash (amount paid) 6,000 Note payable (face amount) 18,000

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