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71. On April 30, Green Ltd. sold land with a book value of $600,000 to Brown Ltd. for its market value of $800,000. Brown Ltd.

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71. On April 30, Green Ltd. sold land with a book value of $600,000 to Brown Ltd. for its market value of $800,000. Brown Ltd. gave Green Ltd. a 12 percent, $800,000 note secured only by the land. At the date of sale, Brown Ltd. was in a very poor financial position and its continuation as a going concern was very questionable. Green Ltd. should: A. Record a $200,000 gain on the sale of land. B. Fully reserve the note by creating an allowance contra account. C. Use the cost recovery method of accounting. D. Record the note at its discounted value

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