Brief Exercise $14-10($Algo$)$ Note with unrealistic interest rate $[$LO$14-3]$

On January $1,$ Snipes Construction paid for earth$-$moving equipment by issuing a $$380,000,5-$year note that specified $4\%$ interest to be paid on December $31$ of each year. The equipment$$s retail cash price was unknown, but it was determined that a reasonable interest rate was $7\%.$

Note: Use tables, Excel, or a financial calculator. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$

At what amount should Snipes record the equipment and the note?

What journal entry should it record for the transaction?