Business, 14.02.2020 21:27 pineapplepizaaaaa
On January 1, 2017, Sandhill Inc. purchased land that had an assessed value of $322,000 at the time of purchase. A $517,000, zero-interest-bearing note due January 1, 2020, was given in exchange. There was no established exchange price for the land, nor a ready fair value for the note. The interest rate charged on a note of this type is 12%. Determine at what amount the land should be recorded at January 1, 2017, and the interest expense to be reported in 2017 related to this transaction.
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On January 1, 2017, Sandhill Inc. purchased land that had an assessed value of $322,000 at the time...
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