Question: Question 15 View Policies Current Attempt in Progress On January 1, 2021, Sheridan Company sold property to Carla Vista Co which originally cost Sheridan $2640000.

Question 15 View Policies Current Attempt in Progress On January 1, 2021, Sheridan Company sold property to Carla Vista Co which originally cost Sheridan $2640000. There was no established exchange price for this property Carla Vista gave Sheridan a $4050000 zero-interest-bearing note payable in three equal annual installments of $1350000 with the first payment due December 31, 2021. The note has no ready market. The prevailing rate of interest for a note of this type is 10%. The present value of a $4050000 note payable in three equal annual installments of $1350000 at a 10% rate of interest is $3357450. What Is the amount of interest income that should be recognized by Sheridan in 2021, using the effective interest method? $0 $335745. $135000 $405000 Attempts: 0 of 1 used Submit Answer Save for at

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