Bob's Excavating purchased some equipment by issuing a three-year 6% note for $8,000 when the market rate for an obligation of this nature was 8%. The interest is payable annually. Actuarial information for three periods follows:

At the date of purchase, what amount should be debited to Equipment?

Question

Bob's Excavating purchased some equipment by issuing a three-year 6% note for $8,000 when the market rate for an obligation of this nature was 8%. The interest is payable annually. Actuarial information for three periods follows:

At the date of purchase, what amount should be debited to Equipment?

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The Answer of Bob's Excavating purchased some equipment by issuing a three-year 6% note for $8,000 when the market rate for an obligation of this nature was 8%. The interest is payable annually. Actuarial information for three periods follows:

At the date of purchase, what amount should be debited to Equipment?

Bob's Excavating Purchased Some Equipment by Issuing a Three-Year 6