Present Value of Note and Gain on Sale
Not what you're looking for?
On January 1, 2010, Fishbone Corp sold a building that cost $250,000 and had accumulated depreciation of 100,000 on the day of the sale. Fishbone received as consideration a 240,000 noninterest-bearing note due on January 1, 2013.
There was no established exchange price for the building, and the note had no ready market. The prevailing rate of interest for a note of this type in January 1, 2010 was 9%. At what amount should the gain from the sale of the building be reported?
Purchase this Solution
Solution Summary
Given facts surrounding the sale of a building in return for a non-interest bearing note, this solution illustrates how to compute the gain on the sale.
Purchase this Solution
Free BrainMass Quizzes
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Introduction to Finance
This quiz test introductory finance topics.
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.
Employee Orientation
Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.