On June $1,2023,$ Tesla Corporation approached Gates Corporation about buying a parcel of undeveloped land. Gates was asking $$240,000$ for the land and Tesla saw that there was some flexibility in the asking price. Tesla did not have enough money to make a cash offer to Gates and proposed to give, in return for the land, a $$300,000,$ five$-$year promissory note that bears interest at the rate of $4\%.$ The interest is to be paid annually to Gates on June $1$ of each of the next five years. Gates insisted that the note taken in return become a mortgage note. Tesla accepted the amended offer, and Tesla signed a mortgage note for $$300,000$ due June $1,2028.$ Tesla would have had to pay $10\%$ at its local bank if it were to borrow the cash for the land purchase. Gates, on the other hand, could borrow the funds at $9\%.$ Both Tesla and Gates have calendar year ends