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Pueblo Co. acquires machinery by paying $10,000 cash and signing a $5,000

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January 1st, 2018

Pueblo Co. acquires machinery by paying $10,000 cash and signing a $5,000, 2-year, zero-interest-bearing note payable. The note has a present value of $4,208, and Pueblo purchased a similar machine last month for $13,500. At what cost should the new equipment be recorded?

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