accounting interest expense question?

[itsjudicious]

A company buys a new machine on on Jan 1 2003. The retailer (seller) agrees to accept a non-interest bearing note for $10,000. The note will be paid in 5 equal installments (of 2,000 each) starting on Dec 31 2003. A fair rate of interest at the date of the deal is 6%.


What does Berkshire record as the cost of the machine on Jan 1 2003??

What will Berkshire record as total interest expense related to the loan (over the life of the loan)?