Ch $12$Early in $20$X$1,$ Nitro Demolition Ltd$.$ borrowed money to partially finance the acquisition of a bulldozer. The loan was a five$-$year, $$101,000$ loan, secured by a first charge on the bulldozer and the guarantee of the company president. The interest rate was $2\%,$ with interest paid annually at the end of each year. An upfront fee of $$20,665$ was charged on the loan.The money was borrowed on $15$ January, and the bulldozer was ordered and paid for on this date. It was delivered on $30$ June $20$X$1.$The invoice price of the equipment was $$191,000.$ It was then customized at a cost of $$20,500$ in July. Staff training and testing on the equipment was completed in August at a cost of $$15,500,$ and the machine was operational in early September $20$X$1.$In addition to the loan for this equipment, the company had the following capital structure and borrowing costs for the year:Operating line of creditTerm bank loanMortgage loan for manufacturing facilityEquity financingAverage Balance$ $3,110,0001,610,0005,110,0003,610,000$Borrowing Cost$$270,000106,000316,000$Required:$1.$ Provide journal entries to record the $$101,000$ loan on $15$ January. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Round your intermediate calculations and final answers to the nearest whole dollaramount.Record the five$-$year, $$101,000$ loan with an interest rate of $2\%$ paid annually at the end of each year. An upfront fee of $$20,665$ was charged on the loan.What is the effective cost of this financing? $($Round to the nearest whole percent$)$Effective cost $\_\_\_\_\_\_\%2.$ Calculate the total cost of the equipment, including capitalized borrowing costs. $($Round your answer to the nearest whole dollaramount.$)$Total cost of the equipment $\_\_\_\_\_$