Question & Answer: On December 31, 2017, Waterway Company acquired a computer from Plato Corporation by issuing a $564,000 zero-interest-bea…..

On December 31, 2017, Waterway Company acquired a computer from Plato Corporation by issuing a $564,000 zero-interest-bearing note, payable in full on December 31, 2021. Waterway Company’s credit rating permits it to borrow funds from its several lines of credit at 12%. The computer is expected to have a 5-year life and a $73,000 salvage value.