BDesrosiers Ltd$.$ had the following long$-$term receivable account balances at December $31,2022$:

Notes receivable

$$1,800,000$

Notes receivable$$Employees

$400,000$

Transactions during $2023$ and other information relating to Desrosiers$$s long$-$term receivables were as follows:

The $$1\mathrm{.}8-$million note receivable is dated May $1,2022,$ bears interest at $9\%,$ and represents the balance of the consideration received from the sale of Desrosiers$$s electronics division to New York Company. Principal payments of $$600,000$ plus appropriate interest are due on May $1,2023,2024,$ and $2025.$ The first principal and interest payment was made on May $1,2023.$ Collection of the note instalments is reasonably assured.

The $$400,000$ note receivable is dated December $31,2022,$ bears interest at $8\%,$ and is due on December $31,2025.$ The note is due from Marcia Lumby, president of Desrosiers, and is secured by $10,000$ Desrosiers common shares. Interest is payable annually on December $31,$ and the interest payment was made on December $31,2023.$ The quoted market price of Desrosiers$$s common shares was $$45$ per share on December $31,2023.$

On April $1,2023,$ Desrosiers sold a patent to Pinot Company in exchange for a $$200,000$ non$$interest$-$bearing note due on April $1,2025.$ There was no established exchange price for the patent, and the note had no ready market. The prevailing rate of interest for a note of this type at April $1,2023,$ was $12\%.$ The present value of $$1$ for two periods at $12\%$ is $0\mathrm{.}79719($use this factor$).$ The patent had a carrying amount of $$40,000$ at January $1,2023,$ and the amortization for the year ended December $31,2023,$ would have been $$8,000.$ The collection of the note receivable from Pinot is reasonably assured.

On July $1,2023,$ Desrosiers sold a parcel of land to Four Winds Inc. for $$200,000$ under an instalment sale contract. Four Winds made a $$60,000$ cash down payment on July $1,2023,$ and signed a four$-$year, $11\%$ note for the $$140,000$ balance. The equal annual payments of principal and interest on the note will be $$45,125,$ payable on July $1,2024,$ through July $1,2027.$ The land could have been sold at an established cash price of $$200,000.$ Desrosiers had paid $$150,000$ for the land when it purchased it$.$ Collection of the instalments on the note is reasonably assured.

On August $1,2023,$ Desrosiers agreed to allow its customer, Saini Inc., to substitute a six$-$month note for accounts receivable of $$200,000$ it owed. The note bears interest at $6\%$ and principal and interest are due on the note$$s maturity date.

Instructions

For each note:

Describe the relevant cash flows in terms of amount and timing.

Determine the amount of interest income that should be reported in $2023.$

Determine the portion of the note and any interest that should be reported in current assets at December $31,2023.$

Determine the portion of the note that should be reported as a long$-$term investment at December $31,2023.$

Prepare the long$-$term receivables section of Desrosiers$$s SFP at December $31,2023.$

Prepare a schedule showing the current portion of the long$-$term receivables and accrued interest receivable that would appear in Desrosiers$$s SFP at December $31,2023.$

Determine the total interest income from the long$-$term receivables that would appear on Desrosiers$$s income statement for the year ended December $31,2023.$