Groover Industries issued a 4-year, $90,000, zero-interest-bearing note to McCrery Motors on January 1, 2017 in exchange

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Groover Industries issued a 4-year, $90,000, zero-interest-bearing note to McCrery Motors on January 1, 2017 in exchange

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Groover Industries issued a 4-year, $90,000,zero-interest-bearing note to McCrery Motors on January 1, 2017 inexchange for a delivery truck. Groover’s incremental borrowing rateof interest is 10%. McCrery’s incremental borrowing rate ofinterest is 8%. Prepare Groover’s journal entries for (a) theJanuary 1 issuance of the note and (b) the December 31 recognitionof interest.
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