Hawkeye Inc. had the following long term receivables account balances at December 31, 2019: Note receivable from sale of division $1,500,000 400,000 Note receivable from officer Transactions during 2020 and other information relating to Hawkeye Inc.'s long-term receivables were as follows: A. The $1,500,000 note receivable is dated May 1, 2019, bears interest at 9%, and represents the balance of the consideration received from the sale of Hawkeye Inc.'s corn growing division to Farmer's Co-operative. Principal payments of $500,000 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. B. The $400,000 note receivable is dated December 31, 2019, bears interest at 8%, and is due on December 31, 2022. The note is due from Kirk Ferentz, president of Hawkeye Inc. and is collateralized by 10,000 shares of Hawkeye Inc.'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 Hawkeye Inc.'s common stock was $45 per share on December 31, 2020. C. On April 1, 2020, Hawkeye Inc. sold a patent to Iowa Farmers in exchange for a $100,000 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 12%. The present vale of $1 for two periods at 12% is 0.797 (use this factor). The patent had a carrying value of $40,000 at January 1, 2020, and the amortization for the year ended December 31, 2020, would have been $8,000. The collection of the note receivable from Iowa Farmers is reasonably assured. D. On July 1, 2020, Hawkeye Inc. sold a parcel of land to Fry Company for $200,000 under an installment sale contract. Fry Company made a $60,000 cash down payment on July 1, 2020, and signed a 4-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, 2021. through Julvl. 2024. The land could have been sold