$($a$)$ On January $1,2025,$ Ayayai Inc. purchased land that had an assessed value of $$321,000$ at the time of purchase. A $$561,000,$ zero$-$interest$-$bearing note due January $1,2028,$ 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 on 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 intermediate calculation to $5$ decimal places, e$.$g$.0\mathrm{.}23451$ and final answers to $0$ decimal places, e$.$g$.38,548.)$

Land to be recorded at January $1,2025$

Interest expense to be reported

$

$($b$)$ On January $1,2025,$ Pina Furnitur borrowed $$5,600,000($face value$)$ from Sinise Co$.,$ a major customer, through a zero$-$interest$-$bearing note due in $4$ years. Because the note was zero$-$interest$-$bearing, Pina Furniture agreed to sell furniture to this customer at lower than market price. A $8\%$ 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 places, e$.$g$.0\mathrm{.}23451$ answers to $0$ decimal places, e$.$g$.38,548.$ If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.$)$

Account Titles and Explanation

Debit

Credit