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On December 30, Year 1, Chang Co. sold a machine to Door Co. in exchange for a non-interest-bearing note requiring ten annual payments of $10,000.

On December 30, Year 1, Chang Co. sold a machine to Door Co. in exchange for a non-interest-bearing note requiring ten annual payments of $10,000. Door made the first payment on December 30, Year 1. The market interest rate for similar notes at date of issuance was 8%.

In its December 31, Year 1 balance sheet, what amount should Chang report as note receivable?

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