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Discharged at the time of the sale

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ASTRO purchased equipment for $100,000 and signed a note with the seller for the entire cost. The interest rate on the note is 7%. This loan requires monthly payments of $7,000. Monthly payments include interest and principle. Useful life of equipment is 5 years.

ASTRO decided to sell to a third party the equipment acquired on Jan.1, 2019 for $100,000. All loan obligations would have to be discharged at the time of the sale.

Reference no: EM132421205

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