(Notes Receivable with Realistic Interest Rate) On October 1, 2019, Arden Farm Equipment Company sold a pecan-harvesting machine to Valco Brothers Farm. In lieu of a cash payment Valco Brothers Farm gave Arden a 2-year, $120,000, 8% note (a realistic rate of interest for a note of this type). The note required interest to be paid annually on October 1. Arden's financial statements are prepared on a calendar-year basis.