Blair sells an acre of land (with potential environmental issues) to Abby for $200,000. Blair receives a demand promissory note with a face amount of $200,000 bearing adequate interest. However, due to Abby's questionable creditworthiness and the condition of the land the note cannot be sold at face value and has a value at the time of receipt of only $80,000. When must Blair recognize income and at what value?

Answer rating: 100% (QA)

In this scenario Blair sells an acre of land to Abby for 200000 and receives a demand promissory not... View the full answer