On December 31, 2017, Laner Inc, acquired a machine from Rocky Corporation by insuing a $600,000,...

On December 31, 2017, Laner Inc, acquired a machine from Rocky Corporation by insuing a $600,000, non-interest-bearing note that is payable in full on December 31, 2021. The company's credit rating permits it to borrow funds from its severni lines of credit at 10% The machine is expected to have a five year life and a $70,000 residual value la) Calculate the value of the note and prepare the journal entry for the purchase on

December 31, 2017. 2 Marks () Prepare any necessary adjusting entries related to depreciation of the asset (use straight line) and amortization of the note fuse the effective interest method on December 31, 2018.

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