Question
1. On January 1, 2020, Cheyenne Corporation sold a building that cost $ 254,700 and that had accumulated depreciation of $ 105,950 on the date
1. On January 1, 2020, Cheyenne Corporation sold a building that cost $ 254,700 and that had accumulated depreciation of $ 105,950 on the date of sale. Cheyenne received as consideration a $ 244,700 non-interest-bearing note due on January 1, 2023. 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, 2020, was 11%. At what amount should the gain from the sale of the building be reported? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) 2. Leon Hitchcock is 37 years old today and he wishes to accumulate $536,000 by his 60 th birthday so he can retire to his summer place on Lake Hopatcong. He wishes to accumulate this amount by making equal deposits on his 37 th through his 59 th birthdays. What annual deposit must Leon make if the fund will earn 10% interest compounded annually? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)
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