The Versa Tile Company purchased a delivery truck on February 1, 2018. The agreement failed to state an interest rate, but it required Versa Tile to pay the purchase price of $40,000 in two equal payments on February 1 of 2019 and 2020. Can Seller recognize $40K of revenue on 2/1/18?

Assuming an 8% market rate of interest, calculate the amount of revenue truck seller can recognize on 2/1/18?

The answer is 35665, but how do you get this?