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On October 1, 2018, Justine Company purchased equipment from Napa Inc. in exchange for a
noninterest-bearing note payable in five equal annual payments of $500,000, beginning Oct 1,
2019. Similar borrowings have carried an 11% interest rate. The equipment would be recorded at:
A) $2,500,000.
B) $2,225,000.
C) $1,847,950.
D) $2,115,270.
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