On January 1, 2017, Euroasia Company sold an equipment costing 500,000, which had a carrying amount of 350,000, receiving a 125,000 down payment and, as additional consideration, a 400,000 noninterest bearing note due on January 1, 2020.

There was no established exchange price for the equipment, and the note had no ready market.

The prevailing rate of interest for a note of this type at January 1, 2017 was 12%. The present value of 1 at 12% for three periods is 0.7118.

Required:

Prepare journal entries for 2017,2018,2019 and 2020.