On January 1, 2014, Hardy, Inc., purchased certain plant assets under a deferred payment contract. The agreement called for making annual payments of $10,000 for five years. The first payment is due on January 1, 2014, and the remaining payments are due on January 1 of each of the next four years. Assume an imputed interest rate of 10%.
What entry should be made to record the purchase of these plant assets on January 1, 2014?
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