On January $1,20$X$1,$ Entity B sells an item of equipment for $$100,000$ under a financing agreement that has no stated interest rate. On the date of sale, B transfers control of the equipment to the customer. The first annual installment of $$20,000$ is due on December $31,20$X$1,$ one year from the date of sale, and each subsequent year for five years. The policy of not charging interest is consistent with normal industry practice. Entity B has separately determined that the transaction includes a significant financing component. Entity B determines that the appropriate annual rate is $10$ percent. Assume that the receivable arising from the transaction is measured at amortized cost after initial recognition