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Oriole sells goods to Sandhill for $ 5 4 0 , 0 0 0 , payment due in two instalments: the first instalment payable in

Oriole sells goods to Sandhill for $540,000, payment due in two instalments: the first instalment payable in 18 months, and the
second payment due 6 months later. The present value of the future payments is $430,000.
Oriole would recognize revenue of $
at
of $
will be earned over the next
years using the effective interest
method.
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