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On January 1, 2022, LTY issued a three-year, 8% stated annual interest note with a principal (maturity value) of $30,000 in exchange for one piece of equipment. At the time of the transaction, the market value of the equipment or the document could not be determined. however, the equipment had a value on the seller's books of $12,000. the company imposed an interest rate of 12% on the loan.