Headland Inc. had the following long-term receivable account balances at December 31, 2016.

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

Note receivable from officer 659,000

Transactions during 2017 and other information relating to Headlands 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 Headland Green division to California 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 $659,000 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 Headland Inc. and is collateralized by 20,000 shares of Headland 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 Headland common stock was $46 per share on December 31, 2017.

3. On April 1, 2017, Headland sold a patent to Porto Company in exchange for a $276,000 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 12%. The patent had a carrying value of $11,040 at January 1, 2017, and the amortization for the year ended December 31, 2017, would have been $1,104. The collection of the note receivable from Porto is reasonably assured.

4. On March 1, 2017, Headland sold a parcel of excess land to SizeCo for $165,800 under an installment sale contract. SizeCo made a $33,160 cash down payment on March 1, 2017, and signed a 4-year 10% note for the $132,640 balance. The equal annual payments of principal and interest on the note will be $41,844 payable on March 1, 2018, through March 1, 2021. The land could have been sold at an established cash price of $175,800. The cost of the land to Headland was $80,800. Circumstances are such that the collection of the installments on the note is reasonably assured.

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