Collin Inc. had the following long-term receivable account balances at December 31, 2019.

Note receivable from sale of division $5,000,000

Note receivable from officer $ 650,000

Transactions during 2017and other information relating to Collins long-term receivables were as follows.

1. The $6,000,000 note receivable is dated July 1, 2015, bears interest at 8%, and represents the balance of the consideration received from the sale of Collins XZ division to Texas Company. Principal payments of $1,000,000 plus appropriate interest are due on July 1, 2016, through 2021. Principal and interest payment was made on July 1, 2016 and 2017. Collection of the note installments is reasonably assured.

2. The $650,000 note receivable is dated October 1, 2016, bears interest at 6%, and is due on October 1, 2020. The note is due from the president of Collin and is collateralized by 20,000 shares of Collins common stock. Interest is payable annually on October 1, and all interest payments were paid on their due dates through December 31, 2017. The quoted market price of Collins common stock was $41 per share on December 31, 2017.

3. On April 1, 2017, Collin sold a patent to Baker Company in exchange for a $250,000 zero-interest-bearing note due on April 1, 2020. 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, 2017, was 14%. The patent had a carrying value of $10,000 at January 1,2017, and the amortization for the year ended December 31, 2017, would have been $1,000. The collection of the note receivable from Baker is reasonably assured.

4. On March 1, 2017, Collin sold a parcel of excess land to Gate Co.for $150,000 under an installment sale contract. Gates made a $30,000 cash down payment on March 1, 2017, and signed a 4-year 10% note for the $120,000 balance. The equal annual payments of principal and interest on the note will be $37,856 payable on March 1, 2018, through March 1, 2021.The land could have been sold at an established cash price of $160,000. The cost of the land to Pawns was $65,000. Circumstances are such that the collection of the installments on the note is reasonably assured.

Instructions

(a) Prepare the long-term receivables section of Collins balance sheet at December 31, 2017

.(b) Prepare a schedule showing the current portion of the long-term receivables and accrued interest receivable that would appear in Collins balance sheet at December 31, 2017

.(c) Prepare a schedule showing interest revenue from the long-term receivables that would appear on Collins income statement for the year ended December 31, 2017.