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Lambert purchased a building by issuing a three-year installment note. The note is to be repaid in equal installments of $1.3 million per year beginning one year hence. The current market rate of interest is 12%. Interest is paid at year end. Prepare the journal entry to record the transaction and the interest expense at the end of the first year.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M956255

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