(a) On January 1, 2020, Tamarisk Inc. purchased land that had an assessed value of $353,000at the time of purchase. A $586,000, zero-interest-bearing note due January 1, 2023, 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 is12%.

Determine at what amount the land should be recorded at January 1, 2020, and the interest expense to be reported in 2020 related to this transaction. (Round answers to 0 decimal places

Land to be recorded at January 1, 2020??? $

Interest expense to be reported??? $

(b) On January 1, 2020, Vaughn Furniture borrowed $5,900,000(face value) from Sinise Co., a major customer, through a zero-interest-bearing note due in4years. Because the note was zero-interest-bearing, Vaughn Furniture agreed to sell furniture to this customer at lower than market price. A10% rate of interest is normally charged on this type of loan.

Prepare the journal entry to record this transaction. (Round answers to 0 decimal places, e.g. 38,548.

Account Titles and Explanation Debit Credit

(a)

(b)

(c)

(d)

Determine the amount of interest expense to report for 2020. (Round answer to 0 decimal places, e.g. 38,548.)

Interest expense to be reported for 2020?? $