Company A sells land to Company B for $100,000. Company A takes a note from...
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Company A sells land to Company B for $100,000. Company A takes a note from Company B that is due in two years. Assuming an annual interest rate of 5% is appropriate, the implied annual interest is $100,000 0.05 = $5,000, and the present value of the note is $100,000 0.90703 = $90,703. What amount should Company A record for the sale?
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