P6.1 (LO 2, 4) (Various Time Value Situations) Answer each of these unrelated questions.

1. On January 1, 2022, Yang Ltd. sold a building that cost 25,000,000 and that had accumulated depreciation of 10,000,000 on the date of sale. Yang received as consideration a 24,000,000 non-interest-bearing note due on January 1, 2025. 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, 2022, was 9%. At what amount should the gain from the sale of the building be reported? 2. On January 1, 2022, Yang Ltd. purchased 300 of the 100,000 face value, 9%, 10-year bonds of Walters Inc. The bonds mature on January 1, 2032, and pay interest annually beginning January 1, 2023. Yang purchased the bonds to yield 11%. How much did Yang pay for the bonds? 3. Yang Ltd. bought a new machine and agreed to pay for it in equal annual installments of 400,000 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 Yang record as the cost of the machine? 4. Yang Ltd. purchased a special tractor on December 31, 2022. The purchase agreement stipulated that Yang should pay 2,000,000 at the time of purchase and 500,000 at the end of each of the next 8 years. The tractor should be recorded on December 31, 2022, at what amount, assuming an appropriate interest rate of 12%? 5. Yang Ltd. wants to withdraw 12,000,000 (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%?