Teed's Contracting Company Bought a New Excavator on January 1

Essay

Teed's Contracting Company bought a new excavator on January 1, 2013.The company paid $10,000 down and signed a note receivable for the balance.The note required four annual cash payments of $18,000; the market interest rate is 8 percent
Required:
A) At what amount will the equipment be recorded on the balance sheet for 2013?
B) How much was the interest expense for 2013?
C) What is the total amount of interest Teed's will pay on the machine?