[mavale2]

1) $52,630 payable at the end of the seventh, eighth, ninth, and tenth periods at 11%.

2)On January 1, 2012, Fishbone Corporation sold a building that cost $252,300 and that had accumulated depreciation of $101,700 on the date of sale. Fishbone received as consideration a $242,300 non-interest-bearing note due on January 1, 2015. 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, 2012, was 11%. At what amount should the gain from the sale of the building be reported?

[paraclete]

where do you get these questions? Is there some academic cretan out there thinking it up?

when the building is sold its profit or loss on sale is determined. The value of the instrument of consideration is a separate issue and it will have to be valued at market value at each balance date.The fact that there is no "market" for the note at this time is not relevant. Taken at face value the consideration is the value of the note.