Double J Construction Company plans to buy a used dump truck that has a price of $78,000. Double J is going to put $10,000 down and the dealer has offered to finance the remaining $68,000 with an installment note at 5 percent interest for 48 months.

Required:

A. What cost will be assigned to the truck and the note?
B. What is the monthly payment?
C. If Double J plans to purchase the truck on October 31, 2019, what is the interest expense shown on the budgeted income statement for calendar year end of 2019.
D. What will be the carrying value of the note on the budgeted balance sheet for December 31, 2019?