(1) On January 1, 2017, Fishbone Corporation sold a building that cost $250,000 and that had accumulated depreciation of $100,000 on the date of sale. Fishbone received as consideration a $240,000 non-interest-bearing note due on January 1, 2020. There was no established exchange price for the building, and the note had no ready market. The prevailing rate of interest for a note of this type on January 1, 2017, was 9%. At what amount should the gain from the sale of the building be reported?

(2) On January 1, 2017, Fishbone Corporation purchased 300 of the $1,000 face value, 9%, 10-year bonds of Walters Inc. The bonds mature on January 1, 2027, and pay interest annually beginning January 1, 2018. Fishbone purchased the bonds to yield 11%. How much did Fishbone pay for the bonds?

From where can I know which factor table should I use? The first question used PRESENT VALUE OF 1 (PRESENT VALUE OF A SINGLE SUM) and the second one used PRESENT VALUE OF AN ORDINARY ANNUITY OF 1 TABLE.

Yaur answer is correct. a $240, in from the On January 1, 2017, Fishbone Corporation sold a building that cost $250,000 and that had accumulated depreciation of $100,0DD on the date of sale. Fishbone received as consideration a $240,000 non-interest-bearing note due on January 1, 2020. There was no established axchange price for the building, and the note had no ready markat. The prevailing rate of interast for a note of this type on January 1, 2017, was 9%. At what amount should the gain from the sala of the building be raported? (Round factor values to 5 decimal places, e.g. 1.25124 and final ansver to O decimal places, e.g 458,581.) intret for a note of this pe on January 1,2017, ml places, e-g. 4881 The amount of gain should be reported SHOW SOLUTION LINK TO TEXTLINK TO TEXT Your answer is correct. OrnJanuary 1 2017, Fishbone Corporation purchased 300 of the $1,000 ace value, 99, 10-year bonds of Walters Inc. The bonds mature on January 1 2027 and pay interest annually beginning lanuary 1 2018 Fishbone purchased the bonds to yield 11%. How much did Fishbone pay for the bonds? (Round factor values to 5 deciial places, e.g. 1.25124 and final answer to o decimal places, e.g. 458,581.) ol places ey. bands Fishbone must pay for tha bond s ow s SHOW SOLUTION LINK TO TEXT LINK TO TEXT