1. On January 1, 20:4. Melanie Co. sold a building. which had a carrying amount of $350,000, receiving a $125,000 down payment and. as additional consideration, a $400,000 noninterst hearing note due on January 1.20:6. There was no established exchange price for the building, and the note had no ready market. The prevailing rate of interest tor a note of this type at January 1,20X4. was 10%. The present value of 1 at 10% for three periods is 025 what amount of interest income should be included in Melanie's 20x4 income statement? a.0 b. 30.000 0. 35.000 0.49, 2. On January 1. 2036 Kiristeile Co. sold goods to Jane Co. Jane signed a noninteresthearing note requiring payment of $00,000 annually for seven years. The rst payment was made on January 1. 20x5. The prevailing rate of interest for this type of note at date of issuance was 10%. Kiristelle should record the sales revenue in January 20x5 ot a. 321,600 0. 202.200 c. 261.000 d. 214.200 Use the following information for the next two question: On January 2. 20x3, Zyrus Co. sold equipment with a carrying amount of $480,000 in exchange for a $500,000 noninterest hearing note due January 2, 20:03. There was no established exchange price for the equipment. The prevailing rate of interest tor a note of this type at January 2.20x3 was 10% 3. In Zyrus 20x3 income statement, what amount should he reported as interest income? a. aooo 0. 45,006 (1. 50,000 d. Ell 4. In zyrus' 20x3 incoem statement, what amount should he reported as gain (loss) on sale of machinery? a. (30,000] loss 0. 30,000 gain c.120.000 gain d. 220,000 gain