P$5\mathrm{.}1($LO $2,4)$ Groupworl$3)($Various Time Value Situations$)$ Answer each of these unrelated

questions.

a$.$ On January $1,2025,$ Fishbone Corporation sold a building that cost $$250,000$ and that had accumu$-$

lated depreciation of $$100,000$ on the date of sale. Fishbone received as consideration a $$240,000$

non$-$interest$-$bearing note due on January $1,2028.$ There was no established exchange price for the

building, and the note had no ready market. The prevailing rate of interest for a note of this type on

January $1,2025,$ was $9\%.$ At what amount should the gain from the sale of the building be reported?

c$.$ Fishbone Corporation bought a new machine and agreed to pay for it in equal annual installments

of $$4,000$ at the end of each of the next $10$ years. Assuming that a prevailing interest rate of $8?$

applies to this contract, how much should Fishbone record as the cost of the machine?

d$.$ Fishbone Corporation purchased a special tractor on December $31,2025.$ The purchase agreement

stipulated that Fishbone should pay $$20,000$ at the time of purchase and $$5,000$ at the end of each of

the next $8$ years. The tractor should be recorded on December $31,2025,$ at what amount, assuming

an appropriate interest rate of $12\%?$

e$.$ Fishbone Corporation wants to withdraw $$120,000($including principal$)$ from an investment fund

at the end of each year for $9$ years. What should be the required initial investment at the beginning

of the first year if the fund earns $11\%?$