questions 8.2, 8.3, and 8.4

8.2 at 12/311MI. Fueling Up On 1/1/X Co. for $5.20 per gallon to either accept physical deli current market price for $5.15 per gallon. On 1273 11/X1. Airline Inc. signed a purchase agreement to purchase 10,000 gallons of iet fuel from Seller 20 per gallon on 1/1/X3. The contract stipulates that, at settlement on 12/31/X3, Airline Inc. can choose physical delivery of the jet fuel or can accept settlement in cash of the difference between the then market price and the contract price for the jet fuel. At the time the contract was signed, iet fuel was selling ar gallon, On 12/31/X1, jet fuel was selling for $5.25 per gallon. As of 12/31/X2, jet fuel was selling for er sallon. What entries should Airline Inc. record as of 1) contract inception, 2) then at 12/31/X1, 3) then at 12/31/X2? 8.3 8.4 Griendly Contribution A new children's hospital is being built in Springfield, and Friendly Corp. has publicly edged that it will contribute $5 million toward the hospital's construction. In its pledge agreement dated 1/1/X1. Friendly Corp. and the hospital have agreed upon the following contribution schedule: $2 million to be contributed 12/31/X1, $2 million at 12/31/X2, and $1 million at 12/31/X3. Friendly's typical borrowing rate is 6%. How must Friendly Corp. report the contribution in its financial statements at the end of each reporting period and as of the inception of the agreement? What disclosures are required, if any? Dealer Financing On 1/1/X1, Tractor Co. sold a new combine to Jim's U-Pick farm. The purchase agreement establishes a base price of $100,000, plus a contractual interest rate of 5%, payable in 48 monthly installments of $2,302.93. Control of the combine transferred to Jim when Jim signed the contract and had the combine delivered that same day. If Jim had obtained separate financing (say, a bank loan) for the purchase, his interest rate would have been 6%. What amount of revenue should Tractor Co. record at the date of sale? What guidance should Tractor Co. apply to the subsequent measurement of its receivable? Consider the measurement attribute used to record Tractor Co.'s revenues. How does this approach achieve the objective of this measurement attribute? Hint: You might find it useful to use Microsoft Excel's formula options: PMT and PV for this example. Excel walks you through how to input numbers into each formula