On April 1, 2020, Linden sold a patent to Bell Company in exchange for a $160,000 noninterest-bearing
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On April 1, 2020, Linden sold a patent to Bell Company in exchange for a $160,000 noninterest-bearing note due on April 1, 2021. 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 kind at April 1, 2020, was 9%. The collection of the note receivable from Bell is reasonably assured.
Calculate the amount that Linden should record as note receivable and sales revenue on April 1, 2020.
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
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