4 Skipped eBook Print Cash received $80,000 Notes receivable 339,000 Sales price $419,000 Tax rate 30% Estimated tax payment $23,000 Note information: Term of the note 4 years Coupon rate 1.5% Market rate 7.7% The note is due in equal annual payments of principle and interest. Incorrect income statement, for the year ended December 31 Sales $739,000 Expenses 591,000 Interest revenue 5,085 Pretax income 153,085 Tax expense 45.926 Net income 107,159 References What is the correct amount of sales for 20X1? Note: You need to back out the incorrect sales amount used (the N/R at face value) and add in the correct sales amount. The correct sales amount is based on fair value of the note. See problem C7-170 as an example