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On May 1, 2015, Ott, Inc. sold merchandise to Fox Inc. Fox signed a noninterest bearing note requiring payment of $40,000 annually for 7 years.

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On May 1, 2015, Ott, Inc. sold merchandise to Fox Inc. Fox signed a noninterest bearing note requiring payment of $40,000 annually for 7 years. The first payment is due May 1, 2016. The prevailing rate for similar notes on that date is 9%. What amount should Ott, Inc. report as revenue in 2015 and 2016? Round answers to the nearest whole number. Sales Interest Income Revenue 2015 $ $ 2016

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