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On December 27, year 1, Cooper Company sold a building, receiving as consideration a $400,000 noninterest bearing note maturing in 3 years. The building cost

On December 27, year 1, Cooper Company sold a building, receiving as consideration a $400,000 noninterest bearing note maturing in 3 years. The building cost $380,000 and the accumulated depreciation was $160,000 on the date of the sale. The prevailing interest rate for this type of note was 12%. The present value factor for 3 years at 12% is .71. In its year 1 income statement, how much gain or loss should Cooper report on the sale? ( plz show solutions)

a. $20,000 gain

b. $96,000 loss

c. $180,000 gain

d. $64,000 gain

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