A. On January 1, 2017, Flounder Corporation sold a building that cost $254,700 and that had accumulated depreciation of $105,950 on the date of sale. Flounder received as consideration a $244,700 non-interest-bearing note due on January 1, 2020. There was no established exchange price for the building, and the note had no ready market. The prevailing rate of interest for a note of this type on January 1, 2017, was 9%. At what amount should the gain from the sale of the building be reported?

B. On January 1, 2017, Flounder Corporation purchased 350 of the $1,000 face value, 9%, 10-year bonds of Walters Inc. The bonds mature on January 1, 2027, and pay interest annually beginning January 1, 2018. Flounder purchased the bonds to yield 11%. How much did Flounder pay for the bonds?

C. Flounder Corporation bought a new machine and agreed to pay for it in equal annual installments of $5,280 at the end of each of the next 10 years. Assuming that a prevailing interest rate of 8% applies to this contract, how much should Flounder record as the cost of the machine?

D. Flounder Corporation purchased a special tractor on December 31, 2017. The purchase agreement stipulated that Flounder should pay $19,010 at the time of purchase and $4,500 at the end of each of the next 8 years. The tractor should be recorded on December 31, 2017, at what amount, assuming an appropriate interest rate of 12%?

E.Flounder Corporation wants to withdraw $119,850 (including principal) from an investment fund at the end of each year for 9 years. What should be the required initial investment at the beginning of the first year if the fund earns 11%?