Question
On January 1, 20Y8, Crabb & Co. sold land to ASP, Inc. and accepted a 2 year, $500,000 face value note as payment. 6% interest
On January 1, 20Y8, Crabb & Co. sold land to ASP, Inc. and accepted a 2 year, $500,000 face value note as payment. 6% interest is due each December 31. ASPs market rate of borrowing is 12%. Crabb originally purchased the land for $80,000 in 20Y1.
- Whatisthefairmarketvalueofthelandatthedateofexchange?
- Whatisthegainorlossonthesaleoftheland?
What is the amount of interest income recognized by Crabb & Co. in 20Y8?
- WhatistheamountofcashinterestreceivedbyCrabb&Co.in20Y8?
- What is the carrying value of the note receivable on December 31, 20Y8?
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Business Intelligence A Managerial Perspective on Analytics
Authors: Ramesh Sharda, Dursun Delen, Efraim Turban
3rd edition
133051056, 978-0133051056
