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On January 1, 2020, Alvin Corp. sold property to Marvin Ltd., for which Alvin had originally paid $ 570,000. There was no established exchange price
On January 1, 2020, Alvin Corp. sold property to Marvin Ltd., for which Alvin had originally paid $ 570,000. There was no established exchange price for this property. Marvin gave Alvin a $ 900,000, zero-interest-bearing note, payable in three equal annual instalments of $ 300,000, with the first payment due December 31, 2020. The note also has no ready market. The market rate of interest for a note of this type is 10%.
To the nearest dollar, and using the effective-interest method, prepare the journal entries for Marvin Ltd. for 2020
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