On January 1, The Kraft-Kwon Group purchased ($ 280,000) of equipment with a long-term note payable. The

Question:

On January 1, The Kraft-Kwon Group purchased $\$ 280,000$ of equipment with a long-term note payable. The debt is payable in annual instalments of $\$ 56,000$ due on December 31 of each year. At the date of purchase, how will The Kraft-Kwon Group report the note payable?

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