On July 1, 2023, Splish Brothers Inc. made two sales: 1. It sold excess land in exchange for a four-year, non-interest-bearing promissory note in the face amount of $1,101,460. The land's carrying value is $550,000. 2. It rendered services in exchange for an eight-year promissory note having a face value of $470,000. Interest at a rate of 4% is payable annually. The customers in the above transactions have credit ratings that require them to borrow money at 12% interest