On January 1, 2002, the Denver Company sold land that originally cost \($400,000\) to the Boise Company. As payment. Boise gave Denver a \($600,000\) note. The note bears an interest rate of 4% and is to be repaid in 3 annual installments of \($200,000\) (plus interest on the outstanding balance). The first payment is due on December 31. 2002. The market price of the land is not reliably determinable. The prevailing rate of interest for notes of this type is 14%.

Instructions: 

Prepare the entries required on Denver's books to record the land sale and the receipt of each of the three payments. Use the effective-interest method of amortizing am' premium or discount on the note.