12/31/19 Sold Equipment that has an cost of $475,000;

and accumulated depreciation of$225,000

The company receivedin exchange a down payment of $80,000 and a Note Which requires 6 annual payments of $50,000

The first note payment occurs 12/31/20. The stated rate of interest for the note is 6%.

Requirement A:

Record the original transaction, for the seller.

Record the transactions through 12/31/22

12/31/19

12/31/2020

12/31/2021

12/31/2022

Requirement B: Record the original transaction, for the purchaser.

Record the transactions through 12/31/22

01/01/2020

12/31/2020

12/31/2021

12/31/2022

Requirement C: What's the Impact on Classified balance sheet 2020 and Income statement 2020.