The existing theater equipment which was purchased on February 1, 2001 for $12,160 With accumulated depreciation record it for $2019 Plus amount acquired on May 1, 2002 with the With the purchase of the vacant building for 28,000 ( which shows that old theater is 5% of total cost for 5600000).

This equipment was sold on July 1, 2002. A note receivable was excepted in exchange for the old theater equipment.

Maturity valley of a note is 38,000

Turn both notes as three years, stated animal interest rate is 2%, I don't want interest rate consider appropriate in circumstances is 6%.

How can I record sale of this theater equipment?

How can I record accrued interest revenue for this note?

how can I record the loss on this building?

My calculations :

Cost of equipment 12,160 -depreciation 2090 (20x1) = 10070

Plus 5% with acquired vacant building :2800

Gave me 38070 which gave me an among of 70$ loss ( NR 38000-38070)