MESSAGE HY INSTRUCTOR FOR SCREEN PINTERESTO Problem 7-09 (Part Level Submission) Culver Corporation had the following long-term receivable account balances at December 31, 2019. BACK Notes receivable Notes receivable - Employees $1,850,000 500.000 Transactions during 2020 and other information relating to Culver's long-term receivables were as follows: 1. The $1,850,000 note receivable is dated May 1, 2019, bears Interest at 06, and represents the balance of the consideration received from the to Sunland Company, Principal payments of $616,667 plus appropriate interest are due on of ' s tros d o 1.2020 2021 and 2022. The first principal and interest payment was made on May 1, 2020. Collection of the note Instalments is reasonably assured. 2. The $500,000 note receivable is dated December 31, 2019, bears interest at , and is due on December 31, 2022. The note is due from Marcia Cumby, president of Culver Corporation, and is secured by 10.000 Culver's common shares. Interest is payable annually on December 31. and the Interest payment was made on December 31, 2020. The quoted market price of Culver's's common shares was $45 per share on December 31, 2020. 3. On April 1, 2020, Culver's sold a patent to Blossom Company in exchange for a $200.000 non interest-bearing note due on April 1. 2022. There was no established exchange price for the patent, and the note had no ready market. The prevailing rate of interest for a note of this type at April 1, 2020, was 12 The present value of $1 for two periods 125 is 0.79719 (use this factor). The patent had a carrying amount of $38,000 at January 1, 2020, and the amortization for the year ended December 31, 2020 would have been $7,000 The collection of the note receivable from Blossom is reasonably assured 4. On July 1, 2020, Culver's sold a parcel of land to Splish Brothers Inc, for $220,000 under an instalment Sale contract. Splish Brothers made a $62,000 cash down payment on My 1, 2020, and signed a four year, 11% note for the $158.000 balance. The equal annual payments of principal and interest on the note will be $50.927, payable on May 1, 2021 through July 1, 2024. The land could have been sold at an established cash price of $200.000. Oulver's had paid $155,000 for the land when it purchased it. Collection of the Instalments on the note is reasonably assured. and 5. On August 1, 2020, Culver's agreed to allow its customer, Saini Inc, to substitute a six-month note for accounts receivable of $200.000 it owed. The notebears interest at 6 principal and interest are due on the note' maturity date. Click here to view the factor tab PRESENT VALUE OF Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1 The tables in this problem are to be used as a reference for this problem. (For calculation purposes, use 5 decimal places as displayed in the factor table provided) cribe the relevant cash flows in terms of amount and timing. Cash inflows from notes % Note receivable Principal Interest % Note receivable Principal Interest Non interest bearing note receivable Payment Instalment contract receivable Down payment Payment 6% Note receivable Principal Interest Total set by your structor By accessing this question Assistance, you will learn while you can points based on the point potential MESSAGE HY INSTRUCTOR FOR SCREEN PINTERESTO Problem 7-09 (Part Level Submission) Culver Corporation had the following long-term receivable account balances at December 31, 2019. BACK Notes receivable Notes receivable - Employees $1,850,000 500.000 Transactions during 2020 and other information relating to Culver's long-term receivables were as follows: 1. The $1,850,000 note receivable is dated May 1, 2019, bears Interest at 06, and represents the balance of the consideration received from the to Sunland Company, Principal payments of $616,667 plus appropriate interest are due on of ' s tros d o 1.2020 2021 and 2022. The first principal and interest payment was made on May 1, 2020. Collection of the note Instalments is reasonably assured. 2. The $500,000 note receivable is dated December 31, 2019, bears interest at , and is due on December 31, 2022. The note is due from Marcia Cumby, president of Culver Corporation, and is secured by 10.000 Culver's common shares. Interest is payable annually on December 31. and the Interest payment was made on December 31, 2020. The quoted market price of Culver's's common shares was $45 per share on December 31, 2020. 3. On April 1, 2020, Culver's sold a patent to Blossom Company in exchange for a $200.000 non interest-bearing note due on April 1. 2022. There was no established exchange price for the patent, and the note had no ready market. The prevailing rate of interest for a note of this type at April 1, 2020, was 12 The present value of $1 for two periods 125 is 0.79719 (use this factor). The patent had a carrying amount of $38,000 at January 1, 2020, and the amortization for the year ended December 31, 2020 would have been $7,000 The collection of the note receivable from Blossom is reasonably assured 4. On July 1, 2020, Culver's sold a parcel of land to Splish Brothers Inc, for $220,000 under an instalment Sale contract. Splish Brothers made a $62,000 cash down payment on My 1, 2020, and signed a four year, 11% note for the $158.000 balance. The equal annual payments of principal and interest on the note will be $50.927, payable on May 1, 2021 through July 1, 2024. The land could have been sold at an established cash price of $200.000. Oulver's had paid $155,000 for the land when it purchased it. Collection of the Instalments on the note is reasonably assured. and 5. On August 1, 2020, Culver's agreed to allow its customer, Saini Inc, to substitute a six-month note for accounts receivable of $200.000 it owed. The notebears interest at 6 principal and interest are due on the note' maturity date. Click here to view the factor tab PRESENT VALUE OF Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1 The tables in this problem are to be used as a reference for this problem. (For calculation purposes, use 5 decimal places as displayed in the factor table provided) cribe the relevant cash flows in terms of amount and timing. Cash inflows from notes % Note receivable Principal Interest % Note receivable Principal Interest Non interest bearing note receivable Payment Instalment contract receivable Down payment Payment 6% Note receivable Principal Interest Total set by your structor By accessing this question Assistance, you will learn while you can points based on the point potential