a$)$ Johnson purchased the building in which their corporate oftice is nouseu on $\frac{1}{1}\frac{?}{23}$ for $$5,500,000.$ They put down $$900,000$ cash and had to borrow the remaining amount at $8\%$ over a $20-$year term. At the time of the purchase, they had the option to lease the building. The $20-$year lease would begin on $\frac{1}{1}\frac{?}{23}$ and called for annual payments of $$350,000$ beginning on $\frac{12}{31}\frac{?}{23}$ for the first $10$ years and payments of $$300,000$ beginning on $\frac{12}{31}\frac{?}{33}$ for the remaining $10$ years of the lease. Dustin had the option to purchase the building for $$1$ on December $31,2041,$ at the end of the lease. Did the CFO make the right decision by purchasing the building? Why or why not? Show your work.

b$)$ This year, the company sold land for a non$-$interest$-$bearing note. The note calls for annual payments of $$30,000$ for $4$ years. The payments will begin one year from the date of the sale. An appropriate rate of interest for this type of note is $7\%.$ The land had an original purchase cost of $$90,000.$ The CFO told the accounting department to record the sale as follows:

$\backslash$table$[[$Notes Receivable,$$120,000$