Can you please explain Part b and C. I got part B wrong and I am not sure why. I am not sure how to do part C. Can you provide work? Thank you!
Problem 7-09 (Part Level Submission) Marin Inc. had the following long-term receivable account balances at December 31, 2019. Note receivable from sale of division Note receivable from officer $2,100,000 464,800 1. Transactions during 2020 and other information relating to Marin's long-term receivables were as follows. The $2,100,000 note receivable is dated May 1, 2019, bears interest at 10%, and represents the balance of the consideration received from the sale of Marin's electronics division to New York Company. Principal payments of $700,000 plus appropriate interest are due on May 1, 2020, 2021, and 2022. The first principal and interest payment was made on May 1, 2020. Collection of the note installments is reasonably assured. 2. The $464,800 note receivable is dated December 31, 2019, bears interest at 9%, and is due on December 31, 2022. The note is due from Sean May, president Marin Inc. and is collateralized by 11,620 shares of Marin's common stock. Interest is payable annually on December 31, and all interest payments were paid on their due dates through December 31, 2020. The quoted market price of Marin's common stock was $45 per share on December 31, 2020. On April 1, 2020, Marin sold a patent to Pennsylvania Company in exchange for a $112,000 zero-interest-bearing note due on April 1, 2022. 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, 2020, was 13%. The present value of $1 for two periods at 13% is 0.783 (use this factor). The patent had a carrying value of $44,800 at January 1, 2020, and the amortization for the year ended December 31, 2020, would have been $8,960. The collection of the note receivable from Pennsylvania is reasonably assured. On July 1, 2020, Marin sold a parcel of land to Splinter Company for $200,000 under an installment sale contract. Splinter made a $60,000 cash down payment on July 1, 2020, and signed a 4-year 12% 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, 2021, through July 1, 2024. The land could have been sold at an established cash price of $200,000. The cost of the land to Marin was $150,000. Circumstances are such that the collection of the installments on the note is reasonably assured. 3. 4. (a) Your answer is correct. Prepare the long-term receivables section of Marin's balance sheet at December 31, 2020. (Round answers to O decimal places, e.g. 5,125.) MARIN INC. Long-Term Receivables Section of Balance Sheet December 31, 2020 Note receivable from sale of division 700000 Note receivable from officer 464800 Note receivable from sale of patent 96246 Installment contract receivable 111675 Total long-term receivables 1372721 (b) Your answer is partially correct. Try again. Prepare a schedule showing the current portion of the long-term receivables and accrued interest receivable that would appear in Marin's balance sheet at December 31, 2020. (Round answers to 0 decimal places, e.g. 5,129.) MARIN INC. Selected Balance Sheet Balances December 31, 2020 1 Current portion of long-term receivables Note receivable from sale of division 700000 Installment contract receivable 28325 Total current portion of long-term receivables v 728325 Accrued interest receivable Note receivable from sale of division 84000 Installment contract receivable 8400 Total accrued interest receivable 92400 (c) Prepare a schedule showing interest revenue from the long-term receivables that would appear on Marin's income statement for the year ended December 31, 2020. (Round answers to 0 decimal places, e.g. 5,125.) MARIN INC. Interest Revenue from Long-Term Receivables
