Ok for instant, on Jan 1, 2008, Aaron Corp sold a building that cost $ 250,000 and that had accumulated depreciation of $100,000 ont the date of sale. Aarib received as consideration a 275,000 noninterest-bearing note due on Jan 1, 2011. 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 Jan 1, 2008, was 9%. At what amount should the gain from the sale of the building be reported?

Ok what I did was I took 250,000 this multiple with the Present Value of an annuity due of 1 which is 3.53130 and I came up with $882.83