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On December 3 0 , Chang Co . sold a a machine to Door Co . in exchange for a noninterest - bearing note requiring

On December 30, Chang Co. sold a a machine to Door Co. in exchange for a noninterest-bearing note requiring 10 annual payments of $10,000. Door made the first payment on Decmeber 30. The market interest rate for similar notes at date of issuance was 8%. Information on present value factors is as follows: Number of Periods 9 Present Value of $1 at 8%0.50 Present Vlaue of Ordinary Annuity at 8%6.25 Number of Periods 10 Present Value of $1 at 8%0.46 Present Vlaue of Ordinary Annuity at 8%6.71. In its December 31 balance sheet, what amount should Chang report as note receivable?

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