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(a) On Jamuary 1,2025, Indigo Inc purchased land that had an assessed value of $347,000 at the time of purchase, A$558,000,2er0 interest-bearling note due Ianuary

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(a) On Jamuary 1,2025, Indigo Inc purchased land that had an assessed value of $347,000 at the time of purchase, A$558,000,2er0 interest-bearling note due Ianuary 1,2028 , was given in exchange. There was no established exchange price for the land, nor a ready fair value for the note. The interest rate charged an a note of this type is 12% Determine at what amount the land should be recorded at January 1,2025, and the interest expense to be reported in 2025 related to this transaction. (Round Intermedlate calculation to 5 decimal places, es. 0.23451 and final answers to 0 decimal places, es. 38,548 ) Land to be recorded at January 1,2025 5 interest expence to be reported 3 (b) On January 1,2025, Sweet Furniture borrowed $4,300,000 (face value) from Sinise Co, a major customer, through a zero-interesttearing note due in 4 years. Because the note was zero-interest-bearing, Sweet Furniture agreed to sell furniture to this arstomer at Jower than market price. A 10\% rate of interest is normally charged on this type of loan Prepare the journal entry to record this transaction. (Round Intermediate calculation to 5 decimal ploces, e 9.23451 answers to 0 declnal places, eg. 38,548. If no entry is required, select "No Entry" for the account tities and enter o for the amounts. Credit account titles are automatically indented when the omount is entered Do not Indent manualy, tist alf detif entries beforeciefit intries) Determine the amount of interest expense to report for 2025. (Round answer to o decimal places, es. 38,548.) loserest experve to be reported for 2025 TABLE 6.2 Present Value of 1 (Present Value of a Single Sum) TABLE 6.1 Future Value of 1 TABLE 6.2 Present Value of 1 (Present Value of a Sinale Suml TAMIE is? c. val... not TABLE 6.3 Future Value of an Ordinary Annuity of 1 TABLE 6.4 Present Value of an Ordinary Annuity of 1

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