Sunland Inc. had the following long$-$term receivable account balances at December $31,2024.$

Note receivable from sale of division $,$$$1,200,000$

Note receivable from officer $,437,300$

Transactions during $2025$ and other information relating to Sunland's long$-$term receivables were as follows.

The $$1,200,000$ note receivable is dated May $1,2024,$ bears interest at $8\%,$ and represents the balance of the consideration

received from the sale of Sunland's electronics division to New York Company. Principal payments of $$400,000$ plus

appropriate interest are due on May $1,2025,2026,$ and $2027.$ The first principal and interest payment were made on May $1,$

Collection of the note installments is reasonably assured.

The $$437,300$ note receivable is dated December $31,2024,$ bears interest at $7\%,$ and is due on December $31,2027.$ The note

is due from Sean May, president of Sunland Inc. and is collateralized by $10,933$ shares of Sunland's common stock. Interest is

payable annually on December $31,$ and all interest payments were paid on their due dates through December $31,2025.$ The

quoted market price of Sunland's common stock was $$44$ per share on December $31,2025.$

On April $1,2025,$ Sunland sold a patent to Pennsylvania Company in exchange for a $$105,000$ zero$-$interest$-$bearing note due

on April $1,2027.$ 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 $1,2025,$ was $13\%.$ The present value of $$1$ for two periods at $13\%$ is $0\mathrm{.}783($use

this factor$).$ The patent had a carrying value of $$42,000$ at January $1,2025,$ and the amortization for the year ended

December $31,2025,$ would have been $$8,400.$ The collection of the note receivable from Pennsylvania is reasonably assured.

On July $1,2025,$ Sunland sold a parcel of land to Splinter Company for $$200,000$ under an installment sale contract. Splinter

made a $$60,000$ cash down payment on July $1,2025,$ and signed a $4-$year $12\%$ note for the $$140,000$ balance. The equal

annual payments of principal and interest on the note will be $$45,125$ payable on July $1,2026,$ through July $1,2029.$ The land

could have been sold at an established cash price of $$200,000.$ The cost of the land to Sunland was $$150,000.$ Circumstances

are such that the collection of the installments on the note is reasonably assured.

$($a$)$

Your answer is partially correct.

Prepare the long$-$term receivables section of Sunland's balance sheet at December $31,2025.($Round answers to $0$ decimal places,

e$.$g$.5,125.)$

SUNLAND INC.

Long$-$Term Receivables Section of Balance Sheet