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(a) On January 1,2025, Flounder inc. purchased land that had an assessed value of $329,000 at the time of purchase. A $501,000; zero-interest-bearing note due

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(a) On January 1,2025, Flounder inc. purchased land that had an assessed value of $329,000 at the time of purchase. A $501,000; 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. 9.23451 and final answers to 0 decimal ploces, es. 38,548.) (b) On January 1, 2025. Culver Furniture borrowed $4,700,000 (face value) from Sinise Co. a major customer, through a zero-interestbearing note due in 4 years, Because the note was zero-interest-bearing. Culver 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.3. 0.23451 answers to 0 decimal places, e.8. 38,548. If no entry is required, select "No Entry" for the account titles and enter o 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.) (b) On January 1, 2025, Culver Furniture borrowed $4,700,000 (face value) from Sinise Co- a major customer, through a zero-interestbearing note due in 4 years. Because the note was zero-interest-bearing. Culver 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. 0.23451 answers to 0 decimal places, e.s. 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.) Determine the amount of interest expense to report for 2025. (Round answer to 0 decimal places, e. 3. 38,548.)

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