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Question 2 On January 1, Sage Hill Inc. sold used equipment with a cost of $14,500 and a carrying amount of $2,530 to Cheyenne Corp.

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Question 2 On January 1, Sage Hill Inc. sold used equipment with a cost of $14,500 and a carrying amount of $2,530 to Cheyenne Corp. in exchange for a $4,920, three-year non-interest-bearing note receivable. Although no interest was specified, the market rate for a loan of that risk would be 8% and assume that Sage Hill follows ASPE. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Prepare the entry to record the sale of Sage Hill's equipment and receipt of the note. (Round answers to o decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare the entries to record the recognition of interest each year if Sage Hill uses the straight-line method. (Round answers to o decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) Showa Prepare the entries to record the recognition of interest each year if Sage Hill uses the straight-line method. are automatically indented when amount is entered. Do not indent manually. If no entry is require amounts.) Debit Credit Account Titles and Explanation Interest for Year 1: Interest for Year 2: Interest for Year 3: Prepare the entry to record the collection of the note at maturity for Sage Hill. (Credit manually. If no entry is required, select "No Entry" for the account titles and e Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS LINK TO TEXT

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