On June $1,2023,$ Blossom Corporation approached Silverman Corporation about buying a parcel of undeveloped land. Silverman was

asking $$241,000$ for the land and Blossom saw that there was some flexibility in the asking price. Blossom did not have enough money

to make a cash offer to Silverman and proposed to give, in return for the land, a $$305,000,$ five$-$year promissory note that bears

interest at the rate of $4\%.$ The interest is to be paid annually to Silverman on June $1$ of each of the next five years. Silverman insisted

that the note taken in return become a mortgage note. Silverman accepted the amended offer, and Blossom signed a mortgage note

for $$305,000$ due June $1,2028.$ Blossom would have had to pay $10\%$ at its local bank if it were to borrow the cash for the land

purchase. Silverman, on the other hand, could borrow the funds at $9\%.$ Both Blossom and Silverman have calendar year ends.

Click here to view the factor table PRESENT VALUE OF $1.$

Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF $1.$

$($c$)$

Using $(1)$ factor tables, $(2)$ a financial calculator, or $(3)$ Excel function PV$,$ calculate the purchase price of the land and prepare an

effective interest amortization table for the term of the mortgage note payable that is given in the exchange. $($Hint: Refer to

Chapter $3$ for tips on calculating.$)($Round present value factor calculations to $5$ decimal places, e$.$g$.1\mathrm{.}25124$ and final

answer to O decimal places e$.$g$.58,971.)$

Purchase price of the land

Mortgage Note Payable $-$ interest paid at $4\%$

Carrying Amount of Note