Werner Corp. purchased a new piece of equipment on January 1…
Werner Corp. purchased a new piece of equipment on January 1, 2020. The equipment had a list price of $60,000, however the seller agreed to allow Werner Corp. to pay for the equipment in 5 yearly installments of $14,000 on December 31 of each year. Assuming the note incurs interest at 6%, what amount should Werner Corp. debit the equipment account for on the date of purchase?