On January 1, Year 1, Montreal Corp. sold property to VanTassel Ltd. in exchange for a five-year note that has a maturity value of $100,000 and no stated interest rate. The property originally cost Montreal Corp. $35,000. Assume that a market interest rate of 9%. Montreal Corp. is in the business of selling shoes. The company's year end is December 31. Required: a) Prepare a schedule which will make the accounting for this sale easier for the 5 years. b) Prepare the journal entry to show the sale transaction on Montreal's books. c) Prepare any further required journal entries for Year 1. d) Assume that on April 2, Year 3, VanTassel declares bankruptcy and the company handling the receivership/bankruptcy informs Montreal that they will receive a cheque of $30,000 only. Record the entry to bring interest' up to date (to April 2, Year 3) and any other entry required related to the new information. Present Value of $ 1 Period 8 % 1 2 3 6% 0.9434 0.89 0.8396 0.7921 0.7473 7% 0.9346 0.8734 0.8163 0.7629 0.713 0.9259 0.8573 0.7938 0.735 0.6806 9% 0.9174 0.8417 0.7722 0.7084 0.6499 5 Present Value of an ordinary Annuity of $ 1 Period 1 2 3 4 6% 0.9434 1.8334 2.673 3.4651 4.2124 7% 0.9346 1.80B 2.6243 3.3872 4.1002 B% 0.9259 1.7832 2.577 3.312 3.9926 9% 0.9174 1.7591 2.5313 3.2397 3.8896 5