Problem 7-9 Sheridan Inc, had the following long-term receivable account balances at December 31, 2016 Note receivable from sale of division Note receivable from officer $2,100,000 407,000 Transactions during 2017 and other information relating to Sheridan's long-term receivables were as follows. The $2,100,000 note receivable is dated May 1, 2016, bears interest at 9%, and represents the balance of the consideration received from the sale of Sheridan's electronics division to New York Company. Principal payments of $700,000 plus appropriate interest are due on May 1, 2017, 2018, and 2019. The first principal and interest payment was made on May 1, 2017. Collection of the note installments is reasonably assured 1. 2. The S407,000 note receivable is dated December 31, 2016, bears interest at 8%, and is due on December 31, 2019 . The note is due from Sean May, president of Sheridan Inc. and is collateralized by 10,175 shares of Sheridan's common stock. Interest is payable annually on December 31, and all interest payments were paid on their due dates through December 31, 2017 The quoted market price of Sheridan's common stock was $46 per share on December 31, 2017 3. On April 1, 2017, Sheridan sold a patent to Pennsylvania Company in exchange for a $138,000 zero-interest-bearing note due on April 1, 2019. There was no established exchange price for the patent, and the note had no ready market. The prevailing rate of interest for a note of this type at April 1, 2017, was 14%. The present value of $1 for two periods at 14% is 0.769 (use this factor). The patent had a carrying value of $55,200 at January 1, 2017, and the amortization for the year ended December 31, 2017, would have been $11,040. The collection of the note receivable from Pennsylvania is reasonably assured 4. On July 1, 2017, Sheridan sold a parcel of land to Splinter Company for $187,200 under an installment sale contract. Splinter made a $56,160 cash down payment on July 1, 2017, and signed a 4-year 13% note for the $131,040 balance. The equal annual payments of principal and interest on the note will be $48,830 payable on July 1, 2018, through July 1, 2021, The land could have been sold at an established cash price of $187,200. The cost of the land to Sheridan was $137,200. Circumstances are such that the collection of the installments on the note is reasonably assured Your answer is partially correct. Try again. Prepare a schedule showing interest revenue from the long-term receivables that would appear on Sheridan's income statement for the year ended December 31, 2017. (Round answers to o decimal places, e.g. 5,125.) SHERIDAN INC. Interest Revenue from Long-Term Receivables For the Year Ended December 31, 2017 Interest revenue Note receivable from sale of division 420000 Note receivable from sale of patent 11142 Note receivable from officer 32560 Installment contract receivable 8518 Total interest revenue