Question
On Feb. 1, 2022, Randy Inc. had three transactions: 1. It sold patents (an intangible asset) in exchange for a 5-year, non- interest-bearing promissory note
On Feb. 1, 2022, Randy Inc. had three transactions: 1. It sold patents (an intangible asset) in exchange for a 5-year, non- interest-bearing promissory note in the face amount of $900,000. The patents' book value is $630,000. 2. It sold and for a 4-year promissory note having a face value of $910,000. Interest at a rate of 4% is payable annually. The land has a book value of $670.00 3. Randy agreed to accept an installment note from a customer in partial settlement of accounts receivable that were overdue. The note calls for six equal payments of $10,700, including the principal and interest due, on the anniversary of the note. The customers in the above three transactions have credit ratings that require them to borrow money at 9% interest.
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