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On January 1, 2017 Hoff sold land to Run Company, accepting a 3-year $200,000 non-interest-bearing note due January 1, 2018. The fair value of the
On January 1, 2017 Hoff sold land to Run Company, accepting a 3-year $200,000 non-interest-bearing note due January 1, 2018. The fair value of the land is $146,238. The land was originally
purchased for $136,500 on January 1, 2010. An appropriate rate of interest for a note of this
caliber is 11%.
Required:
Prepare all the journal entries in Hoff's books for the January 1,2017 through January 1, 2018, in regards to the Run note.
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