On October 1, 2017, Woburn Company purchased equipment from Brookline, Inc. in exchange for a noninterest-bearing note payable in five equal annual…

On October 1, 2017, Woburn Company purchased equipment from Brookline, Inc. in 

exchange for a noninterest-bearing note payable in five equal annual payments of

$500,000, beginning Oct 1, 2018. Similar borrowings have carried an 11% interest rate. 

What would the equipment be recorded at?