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( a ) On January 1 , 2 0 2 5 , Splish Inc. purchased land that had an assessed value of $ 3 7

(a) On January 1,2025, Splish Inc. purchased land that had an assessed value of $373,000 at the time of purchase. A $549,000, 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.8.0.23451 and final answers to 0 decimal places, e.8.38,548.
Land to be recorded at January 1,2025 $
Interest expense to be reported
$
(b) On January 1,2025, Blossom Furniture borrowed $5,900,000(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, Blossom Furniture agreed to sell furniture to this
customer at lower than market price. A 9% 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.0.23451 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.)
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