On July 1, 2017, Sandhill Inc. made two sales.

1.	It sold land having a fair value of $906,700 in exchange for a4-year zero-interest-bearing promissory note in the face amount of $1,376,436. The land is carried on Sandhill books at a cost of $593,200.
2.	It rendered services in exchange for a4%,8-year promissory note having a face value of $401,380 (interest payable annually).

Sandhill Inc. recently had to pay9% interest for money that it borrowed from British National Bank. The customers in these two transactions have credit ratings that require them to borrow money at11% interest.