PPF purchased land for $ 1mil on May 1 year 1 paying 200,000 in cash...
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PPF purchased land for $ 1mil on May 1 year 1 paying 200,000 in cash and giving $800,000 note payable to the bank. PPF made three annual payments on the note totaling 358,000 which included interest of 178,000/ PPF then defaulted on the note and title of the land was transferred. At the time of the default, the FV of the land approximated the note balance. In PPFs year 4 income statement the amount of the loss should be
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