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

Notes receivable	$1,800,000
Notes receivableEmployees	400,000

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

1. The $1.8-million note receivable is dated May 1, 2022, bears interest at 9%, and represents the balance of the consideration received from the sale of Desrosierss 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.
2. 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 Desrosierss common shares was $45 per share on December 31, 2023.
3. On April 1, 2023, Desrosiers sold a patent to Pinot Company in exchange for a $200,000 noninterest-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 0.79719 (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.
4. 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.
5. 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 notes maturity date.

Instructions

1. For each note:
   1. Describe the relevant cash flows in terms of amount and timing.
   2. Determine the amount of interest income that should be reported in 2023.
   3. Determine the portion of the note and any interest that should be reported in current assets at December 31, 2023.
   4. Determine the portion of the note that should be reported as a long-term investment at December 31, 2023.
2. Prepare the long-term receivables section of Desrosierss SFP at December 31, 2023.
3. Prepare a schedule showing the current portion of the long-term receivables and accrued interest receivable that would appear in Desrosierss SFP at December 31, 2023.
4. Determine the total interest income from the long-term receivables that would appear on Desrosierss income statement for the year ended December 31, 2023.