Walmart acquires a tract of lanbd on January 1, 2010, for $100,000 cash. On December 31, 2010, the current market value of the land is $150,000. Walmart has accounted for the value of the land at acquisition cost and sells the land on December 31, 2011, for a two-year note receivable with a present value of $180,000. The note bears interest rate 8 percent and requires cash payments of $100,939 on December 31, 2012 and 2013. the interest rate will not change until the note receivable is collected.

Ignore incometaxes. Using the analytical framework discussed in the chapter, indicate the effect of the preceding information for 2010 and 2011 under each of the following valuation methods. Make sure to show all of your calculations. The sum of all items in debt should be the same as the sum of the items in credit. Otherwise, there should be something wrong with your answers!

1) How would the transaction be recorded in the Balance Sheet according to the Income Recognition Approach 1. If no records are needed, simply write "No Records Needed"

2) How would the transaction be recorded in the Balance Sheet according to the Income Recognition Approach 3. If no records are needed, simply write "No Records Needed"

3) Walmart received the first payment of $100,939 on December 31, 2012. The payment of $100,939 congtains interest amount and payment of the principal. Caluclate the portion of the interest amount and the new balance of the note receivable right after receiving the first payment.