These are the exhibits used to answer questions below...need some help

KERN, Inc.

475 East 9th Street

Gainesville, FL 32606

Promissory Note

Corporate Officer

This Promissory Note (the "Agreement"), is effective December 31, Year 2.

Principal Amount:

$200,000

Term:

5 years

For value received:Frank Black (the "Borrower")8251 Williams Avenue, Williston, FL 32696

Promises to pay:Kern, Inc. (the "Lender")475 East 9th Street, Gainesville, FL 32606

Borrower and Lender agree as follows:

Loan Repayment:The loan amount must be repaid in full by December 31, Year 7. At any time while not in default under this Note, the Borrower may pay the outstanding balance then owing under this Note to the Lender without further bonus or penalty.

Interest:Borrower shall pay 8 percent (8%) annual interest on the loan with the first interest payment due on December 31, Year 3.

Collateral:5,000 shares Kern, Inc., common stock.

This Promissory Note will be construed in accordance with and governed by the laws of the State of Florida.

Lender:Borrower:Richard Jorgensen

Frank Black

Richard Jorgensen, ChairmanFrank Black, PresidentKern, Inc.Kern, Inc.

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Accounting Notes:

1. All interest payments have been made through December 31, Year 5.
2. The quoted market price of Kern's common stock was $45 per share on December 31, Year 5.

Real Estate

Installment Sales Agreement

Marion County, Florida

THIS IS A LEGALLY BINDING CONTRACT BETWEEN BUYER AND SELLER

Seller:Kern, Inc.Buyer:Able Co.Date:May 1, Year 4

Principal Amount:$750,000 USD

Installment Term:3 years

Property:Warehouse

PARTIES.Kern, Inc., the Seller, does hereby sell, assign, and transfer to Able Co., the Buyer, upon the terms and conditions set forth, the property legally described as:

Warehouse, 8,000 SF, Marion County, Florida.

PURCHASE PRICE.Buyer will pay to the Seller the sum of$750,000 U.S. Dollars.

PAYMENT.

1. Three equal and annual installments of$250,000principal plus interest will be due starting on May 1, Year 5, and continue through May 1, Year 7.
2. Buyer shall pay 9 percent (9%) annual interest.

Robert Thompson

Mary Parker

Robert Thompson, CFOMary Parker, CFOKern, Inc.Able Co.SellerBuyer

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Accounting Notes:

1. Able made its first principal and interest payment on May 1, Year 5.
2. Collection of the remaining note installments is reasonably assured.

PATENT LICENSE AGREEMENT

This patent license agreement, hereinafter referred to as the "Agreement", is made and entered into on this day, April 1, Year 5, by and between:

Kern, Inc., a corporation existing and registered in the State of Florida, having its principal place of business located at 475 East 9th Street, Gainesville, FL, 32606, hereinafter referred to as "Licensor", and acting for and on behalf of itself,

andFrey Corp., a corporation existing and registered in the State of Wisconsin, having its principal place of business located at 1782 Walnut Street, Madison, WI, 53780, hereinafter referred to as "Licensee", and acting for and on behalf of itself.

RECITALS

1. WHEREAS, Licensor are the sole and exclusive owners of patent rights to US123456789, hereinafter referred to as "Licensed Patents".
2. WHEREAS, Licensor desires to grant to Licensee a license under the Licensed Patents pursuant to the terms and conditions hereinafter set forth.

GRANT OF LICENSE

NOW, THEREFORE, in consideration of the mutual promises and covenants hereafter set forth, Licensor and Licensee, each intending to be legally bound, hereby agree as follows:

Type of License:Licensor grants to Licensee a non-exclusive license, with the rights to make, use, and sell the product of the Licensed Patent, US123456789.Licensor retains and reserves the right to license to others.License Duration:Three Years, commencing April 1, Year 5Patents & Trade Secrets:Remain the exclusive property of the LicensorContract Amount:$100,000 non-interest bearing noteDue April 1, Year 6Paul Jackson

Gwen Vega

Paul JacksonGwen VegaKern, Inc.Frey, Corp.~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Accounting Notes:

1. The patent had no established exchange price, and the note had no ready market.
2. The prevailing interest rate for this type of note was 10% at April 1, Year 5.
3. Kern is reasonably assured of collecting the note receivable from Frey.

Kern, Inc.

Non-current receivable account balances

As of December 31, Year 4

Note receivable from sale of warehouse$750,000Note receivable from an officer200,000

Real Estate

Installment Sales Agreement

Alachua County, Florida

THIS IS A LEGALLY BINDING CONTRACT BETWEEN BUYER AND SELLER

Seller:Kern, Inc.Buyer:Barr Co.Date:July 1, Year 5

Principal Amount:$400,000 USD

Installment Term:4 years

Property:Parcel 589281761532, Land

1. PARTIES.Kern, Inc., the Seller, does hereby sell, assign, and transfer to Barr Co., the Buyer, upon the terms and conditions set forth, the property legally described as:
2. 4 acres undeveloped land, at the corner of 1st andMorgan,
3. Alachua County, Florida, Parcel 589281761532
4. PURCHASE PRICE.Buyer will pay to the Seller the sum of$400,000 U.S. Dollars.
5. PAYMENT.
6. Payment of30% of the agreed upon purchase pricewill be made by the Buyer upon the execution of this Agreement.
7. Four equal and annual installments of$88,332including principal and interest will be due starting on July 1, Year 6, and continue through July 1, Year 9.
8. Buyer shall pay 10 percent (10%) annual interest.

Robert Thompson

Greg Causey

Robert Thompson, CFOGreg Causey, CFOKern, Inc.Barr, Inc.SellerBuyer

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Accounting Notes:

1. Fair value of the Land at date of sale was $400,000.
2. Book value of the Land at date of sale was $300,000.
3. Collection of the remaining note installments is reasonably assured.

Scroll down to answer all parts of this task.

Kern, Inc., which is not a public company (an issuer under federal securities laws), has several note receivable accounts.

Use the information provided in the exhibits to calculate the noncurrent and current note receivable balances that should be reported on Kern's

December 31, Year 5, balance sheet. Enter the appropriate amounts in the designated cells below. Ignore the time value of money. Enter all amounts as positive values. Round all amounts to the nearest whole number. If the correct answer is zero (0), enter a zero (0).

Task 1: Kern, Inc., entered into an installment sales agreement with Barr Co. in Year 5 when Kern sold Barr a parcel of land. Determine the amounts

as requested for the note receivable.

Installment sales agreement Amount

1. Contract selling price ?

2. Minus cash down payment ?

3. Contract note balance, 12/31/Year 5 ?

4. Principal portion of payment due 7/1/Year 6 ?

Task 2: Determine the noncurrent and current balances for each note receivable at 12/31/Year 5.

Note receivable Noncurrent balance Current balance

5. Note receivable from sale ofwarehouse

6. Note receivable from an officer

7. Note receivable from sale ofland

8. Note receivable from sale ofpatent