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On January 1, 2020, Apple Inc. acquired equipment on credit. The terms were $8,000 cash...

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Accounting

On January 1, 2020, Apple Inc. acquired equipment on credit. The terms were $8,000 cash down payment plus payments of $6,000 on January 1 for each of the next four years. The implicit interest rate was 6%. The equipments list price was $30,000. Additional costs of $2,000 were incurred to install the equipment.

Required:

Determine the value at which Apple should report the acquired asset. Show your calculations. For any measurement involving present value concepts, provide your calculations.

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