Problem 7-9 Teal Inc. had the following long-term receivable account balances at December 31, 2016 Note receivable from sale of division Note receivable from officer Transactions during 2017 and other information relating to Teal's long-term receivables were as follows. 1. The $1,200,000 note receivable is dated May 1, 2016, bears interest at 10%, and represents the balance of the consideration received from the sale of Teal's electronics $1,200,000 437,000 division to New York Company. Principal payments of $400,000 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 2. The $437,000 note receivable is dated December 31, 2016, bears interest at 9%, and is due on December 31, 2019. The note is due from Sean May, president of Teal Inc. and is collaterazed by 10,925 shares of Teal'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 Teal's common stock was $45 per share on December 31, 2017 3. On April 1, 2017, Teal sold a patent to Pennsylvania Company in exchange for a $139,000 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 13%. The present value of $1 for two periods at 13% is 0.783 (use this factor). The patent had a carrying value of $55,600 at January 1, 2017, and the amortization for the year ended December 31, 2017, would have been $11,120. The collection of the note receivable from Pennsylvania is reasonably assured . On July 1, 2017, Teal sold a parcel of land to Splinter Company for $186,200 under an installment sale contract. Splinter made a $55,860 cash down payment on July 1, 2017, and signed a 4-year 12% note for the $130,340 balance. The equal annual payments of principal and interest on the note will be $43,450 payable on July 1, 2018, through July 1, 2021. The land could have been sold at an established cash price of $186,200. The cost of the land to Teal was $136,200. Circumstances are such that the collection of the installments on the note is reasonably assured Prepare the long-term receivables section of Teal's balance sheet at December 31, 2017. (Round answers to 0 decimal places, e.g. 5,125.) TEAL INC. Long-Term Receivables Section of Balance Sheet LINK TO TEXT Prepare a schedule showing the current portion of the long-term receivables and accrued interest receivable that would appear in Teal'sb (Round answers to o decimal places, e.g. 5,129.) sheet at December 31, 2017 TEAL INC. Selected Balance Sheet Balances Screenshot saved The screenshot was added to your OneDrive. OneDrive Prepare a schedule showing interest revenue from the long-term receivables that would appear on Teal's income statement for the year ended December 31, 2017. (Round answers to O decimal places, e.g. 5,125.) TEAL INC. Interest Revenue from Long-Term Receivables