BACKGROUND On January 1, 2048, Crabb & Co. sold land to ASP, Inc. and accepted a two-year, $500,000 face value note as payment. 6% interest is due each December 31. ASP's market rate of borrowing is 12%. Crabb originally purchased the land for $80,000 in 20Y1. REQUIRED Answer the following questions regarding the exchange. Round all amounts to the nearest whole dollar. 1. Was the note issued at a discount or a premium? DISCOUNT 2. What is the fair market value of the land at the date of exchange? 9449.298 $3.09.298 gain 3. What is the gain or loss on the sale of the land? sales price-purchase price $449,298 - $90,000 - $319,298 4. How does this transaction affect Crabb & Co.'s balance sheet on the date of the exchange? Please include account names, dollar values, and whether the account increased or decreased. Liabilities Equity Assets - Ignd decreases by $80,000 investment increases by $449,298 5. What is the amount of interest income recognized by Crabb & Co. in 20Y8? 6. What is the amount of cash interest received by Crabb & Co. in 20Y8? 7. What is the carrying value of the note receivable on December 31, 20Y8