Mcclelland corporation agreed to purchase some landscaping equipment from agri-products for a cash price of $500,000. before accepting delivery of the equipment, mcclelland learned that the same equipment could be purchased from another dealer for $460,000. to avoid losing the sale, agri-products has offered mcclelland a "no interest" payment plan—mcclelland would pay $100,000 at delivery, $200,000 one year later, and the final $200,000 in two years.

required:

1. mcclelland would usually pay 9% annual interest on a loan of this type. what is the

present value of the agri-products loan at the delivery date?

2. what journal entry would mcclelland make if it accepts the deal and buys from

agri-products?

3. what should mcclelland do?