On July 1, 2025, Blue Inc. made two sales. It sold land having a fair value of $912,330 in exchange for a 4-year zero-interest-bearing promissory note in the face amount of $1,435,565. The land is carried on Blue's books at a cost of $597,200. It rendered services in exchange for a 3%, 8-year promissory note having a face value of $401.660 (interest payable annually). 1 2. Blue Inc. recently had to pay 8% interest for money that it borrowed from British National Bank. The customers in these two transactions have credit ratings that require them to borrow money at 12% interest. Record the two journal entries that should be recorded by Blue Inc. for the sales transactions above that took place on July 1, 2025.

On July 1, 2025, Blue Inc. made two sales. It sold land having a fair value of $912,330 in exchange for a 4-year zero-interest-bearing promissory note in the face amount of $1,435,565. The land is carried on Blue's books at a cost of $597,200. It rendered services in exchange for a 3%, 8-year promissory note having a face value of $401.660 (interest payable annually). 1 2. Blue Inc. recently had to pay 8% interest for money that it borrowed from British National Bank. The customers in these two transactions have credit ratings that require them to borrow money at 12% interest. Record the two journal entries that should be recorded by Blue Inc. for the sales transactions above that took place on July 1, 2025.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization

Section: Chapter Questions

Problem 62P

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