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On June 1, 2014,Johnson & Sons sold equipment to James Landscaping Services. In exchange for...

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Accounting

On June 1, 2014,Johnson & Sons sold equipment to James Landscaping Services. In exchange for a zero-interest bearing note with a face value of $55,000, with payment due in 12 months.The fair value of the equipment on the date of sale was $50,000.The amount of revenue to be recognized on this transaction in 2014 is

a. $55,000.

b. $5,000

c. $50,000

d. $50,000 sales revenue and $2,917interest revenue.

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