Problem V: (9 points) On June 1, 2021, Wolfpack Corp. sold used machinery to Byrd Inc., accepting a three-year, $50,000 face value, non-interest-bearing note in exchange. The note's face value is due when the note matures on June 1, 2024. Before the sale, Wolfpack carried the machinery on its books at a cost of $200,000 and a book value of $60,000 (Note: depreciation has been recorded up to the date of the asset's sale). Neither the fair value of the machinery nor the note is determinable at the time of sale; however, Byrd's incremental borrowing rate is 12%. Wolfpack has a calendar year-end. (Continued on the next page) Note: Show calculations and variables to receive partial credit. A. Rounded to the nearest whole dollar, what is the present value of the non-interest-bearing note? (2 pts) Answer: $ B. Prepare the journal entries to record the machine's sale on 6/1/2021 and the recognition of interest revenue related to the note on 12/31/2021. (7 points) 6/1/2021 12/31/2021 Debit Credit