On 12-31-15, Abby purchased a machine. Abby signed a $750,000 zero-interest bearing note. The note...
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Accounting
On 12-31-15, Abby purchased a machine. Abby signed a $750,000 zero-interest bearing note. The note is payable in full on 12-31-18. Assume an acceptable interest rate on similar notes was 3%. On 12-31-15, Abby incurred and paid $20,000 to have the machine installed in its sales office. (In this problem, you can ignore depreciation.)
Prepare the entries Abby should make related to this machine on 12-31-17 and 12-31-18.
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