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Problem IV: (17 points) On April 1, 2023, Dixon Corp. purchased a truck and a machine for a combined cost of $1,500,000. Dixon paid $500,000 in cash and financed the remaining $1,000,000 by issuing a three (3) year, 8% installment note. The note will be paid back in three equal payments beginning on April 1, 2024.

The Company has determined that the truck and machine have fair market values of $90,000 and $1,710,000, respectively, for a combined fair market value of $1,800,000

Part A: Prepare the journal entry Dixon should make to record the acquisition of these two assets. (8 points)

Date	Account	Debit	Credit
4/1/23

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Problem IV (continued)

Part B: (3.5 points)

Calculate the amount of each installment payment on the note and complete the amortization below. Round the installment payment amount to the nearest whole dollar.

Each Installment Payment Amount = $ _________

Variables	Amount
PV
n
r
PMT	?

Date	Cash Paid	Interest Expense	Reduction in CV	Carrying Value (CV)
4/1/23
4/1/24
4/1/25
4/1/26
Total

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