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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 Splish Inc. purchased land that had an assessed value of $ at the time of purchase. A $ zero
interestbearing note due January 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
Determine at what amount the land should be recorded at January and the interest expense to be reported in related to
this transaction. Round intermediate calculation to decimal places, e and final answers to decimal places, e
Land to be recorded at January $
Interest expense to be reported
$
b On January Blossom Furniture borrowed $face value from Sinise Co a major customer, through a zero
interestbearing note due in years. Because the note was zerointerestbearing, Blossom Furniture agreed to sell furniture to this
customer at lower than market price. A rate of interest is normally charged on this type of loan.
Prepare the journal entry to record this transaction. Round intermediate calculation to decimal places, eg answers to decimal
places, eg If no entry is required, select No Entry" for the account titles and enter 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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