"Well, CBF was carrying the investment at $6,600,000 and sold it to Easy Exchange for $10,000,000. So, they booked a $3,400,000 gain on the transaction," Assume that the financial calculations of the years 2017,2016,2015 gre accurate. Circuit Board Framework (CBF) Income Statements For the four years ended December 31, 2018 In determining whether breach occurred, make sure to perform the following accounting analysis: a. Recreate the journal entry that Circuit Board Framework (CBF) made when it sold the stock to Easy Exchange. How much gain was recognized on the sale of the stock? How much cash inflow did this transaction create for CBF? b. Calculate the present value of the note receivable using a 15% interest rate. Using the present value of the note as the only economic benefit received, recalculate the gain or loss on the transaction. Assume Dash Spencer, LLP breached the duty of care owed to the Booster Bank. Were damages sustained by the Booster Bank caused by Dash Spencer's breach of the duty of care? In answering this question do the following: (a) correct the 2018 income statement using the analysis in question 2 above; (b) perform ratio analysis on the four year's income (as originally stated and then after your corrections in requirement a) to determine if the firm actually had a pattern of income stability. Calculate standard profitability ratios (Return on Sales, Gross Profit Margin, Earnings per share, plus any other analysis you wish to perform.) "Well," Logan explained, "the company that CBF sold the stock to, Easy Exchange, is having their own cash flow problems right now. They couldn't afford to give CBF cash, so CBF accepted a non-interestbearing note due in 5 years. Although CBF won't see the cash for five years, since the title to the stock has passed to the new owners, it can record the gain on the sale." Jasmine pondered this information for a few minutes, and then queried, "Why a non-interest-bearing note? Most companies with a credit rating like Easy Exchange are paying about 15% on loans for transactions like this one