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Tamarisk Inc. has decided to purchase equipment from Central Michigan Industries on January 2, 2020, to expand its production

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Answer #1
Debit Credit
Equipment 1038177
Discount on Notes payable 401823
       Notes payable 1440000
Workings:
PV factor 3.60478 =(1-(1.12)^-5)/0.12
Equipment to be recorded 1038177 =288000*3.60478
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