Can you please solve this problem? On December 31, 2012, Flint Corporation sold for $100,000 an oldmachine having an original cost of $180,000 and a book value of$80,000. The terms of the sale were as follows:$20,000 down payment and $40,000 payable on December 31 eachof the next two years.The agreement of sale made no mention of interest; however, 9%would be a fair rate for this type of transaction.What should be the amount of the notes receivable net of theunamortized discount on December 31, 2012 rounded to thenearest dollar? (The present value of an ordinary annuity of 1 at 9%for 2 years is 1.75911.)a. $70,364b. $90,364.c. $80,000.d. $140,728.

Step 1: Define Notes ReceivableFor short-term notes, there is no need to compute for the present…

Answered: On December 31, 2012, Flint Corporation…

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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