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Jet Air Inc. contracted with Systems Plus Inc. to manufacture heavy equipment. The equipment was...

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Accounting

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Jet Air Inc. contracted with Systems Plus Inc. to manufacture heavy equipment. The equipment was completed and ready for use On January 1, 2020. Jet Air Inc. issued a $1,000,000 note to Systems Plus Inc. in exchange for the equipment that required 8% interest payments annually over 3 years on December 31 of each year. Although the fair value of the customized heavy equipment was not reasonably determinable, it was determined that 10% was a reasonable rate of interest for such a transaction. 400% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00% Present value of single $1 (Table 2) 3 6 0.88900 0.79031 0.86384 0.74622 0.83962 0.70496 0.81630 0.66634 0.79383 0.63017 0.77218 0.59627 0.75131 0 56447 Present value of $1 ordinary annuity (Table 4) 3 6 2.77509 5.24214 2.72325 5.07569 2.67301 4.91732 2.62432 4.76654 2.57710 4.62288 2.53129 4.48592 2.48685 4.35526 The equipment should be recorded on January 1.2020 at $949.248 $1.000.000 $1.051.540 O $950,258

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