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Savoy Inc, sold a building and the land on which it is located on January...

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Accounting

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Savoy Inc, sold a building and the land on which it is located on January 1, 2020, and received a $150,000 nonin- terest-bearing note receivable that matures December 31, 2022. The $150,000 is to be paid in full on the maturity date. The sale was recorded as follows by Savoy. It has been determined that 12% is a realistic interest rate for this note. The annual reporting period ends December 31. The accounts have not been adjusted or closed for 2020. January 1, 2020To record receipt of note Note Receivable.... Accumulated Depreciation, Building. Building ... 150,000 100,000 Land...... 150,000 60,000 40,000 Gain on Sale of Assets Required a. Compue the present value of this note at January 1, 2020. 1. Prepare journal entries required as of the following dates. 1. January 1, 2020, correcting entry 2. December 31, 2020 3. December 31, 2021 4. December 31, 2022

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