On January 1, 2011, Standard Corporation sold specialized equipment originally costing $20,000 and having a book value of $16,000. The market value of the equipment was not readily determinable.
Standard received a $5,000 downpayment and a $10,000, 4 percent note payable in four equal annual installments beginning December 31, 2011. The current market rate on notes of a similar nature and risk is 10 percent.
Required:
Prepare the entries to record the sale of the equipment on January 1, 2011, and the first interest payment received on December 31, 2011.

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The Answer of On January 1, 2011, Standard Corporation sold specialized equipment originally costing $20,000 and having a book value of $16,000. The market value of the equipment was not readily determinable.
Standard received a $5,000 downpayment and a $10,000, 4 percent note payable in four equal annual installments beginning December 31, 2011. The current market rate on notes of a similar nature and risk is 10 percent.
Required:
Prepare the entries to record the sale of the equipment on January 1, 2011, and the first interest payment received on December 31, 2011.

On January 1, 2011, Standard Corporation Sold Specialized Equipment Originally