Problem 6-01 Answer each of these unrelated questions.

a. On January 1, 2020, Sandhill Corporation sold a building that cost $263,240 and that had accumulated depreciation of $101,140 on the date of sale. Sandhill received as consideration a $253,240 non-interest-bearing note due on January 1, 2023. There was no established exchange price for the building, and the note had no ready market. The prevailing rate of interest for a note of this type on January 1, 2020, was 11%. At what amount should the gain from the sale of the building be reported? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

The amount of gain should be reported $___________. (enter a dollar amount of gain should be reported)

b. On January 1, 2020, Sandhill Corporation purchased 344 of the $1,000 face value, 11%, 10-year bonds of Walters Inc. The bonds mature on January 1, 2030, and pay interest annually beginning January 1, 2021. Sandhill purchased the bonds to yield 11%. How much did Sandhill pay for the bonds? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

Sandhill must pay for the bonds $___________.

c. Sandhill Corporation bought a new machine and agreed to pay for it in equal annual installments of $4,790 at the end of each of the next 10 years. Assuming that a prevailing interest rate of 8% applies to this contract, how much should Sandhill record as the cost of the machine? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

Cost of the machine to be recorded $___________.

d. Sandhill Corporation purchased a special tractor on December 31, 2020. The purchase agreement stipulated that Sandhill should pay $18,820 at the time of purchase and $5,180 at the end of each of the next 8 years. The tractor should be recorded on December 31, 2020, at what amount, assuming an appropriate interest rate of 12%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

Cost of tractor to be recorded $___________.

e. Sandhill Corporation wants to withdraw $117,850 (including principal) from an investment fund at the end of each year for 9 years. What should be the required initial investment at the beginning of the first year if the fund earns 11%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

Required initial investment $___________.