On January 1, 2011, Jantzen Company sold land to Dansko Company.There was no established market price for the land.Dansko gave Jantzen a CHF2,400,000 Zero-interest-bearing note payable in three equal annual installments of CHF800,000 with the first payment due December 31, 2011.The note has no ready market.The prevailing rate of interest for a note of this type is 10%.The present value of a CHF2,400,000 note payable in three equal annual installments of CHF800,000 at a 10% rate of interest is CHF1,989,600.The note will be reported on Dansko's 2011 statement of financial position at a carrying value of

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The Answer of On January 1, 2011, Jantzen Company sold land to Dansko Company.There was no established market price for the land.Dansko gave Jantzen a CHF2,400,000 Zero-interest-bearing note payable in three equal annual installments of CHF800,000 with the first payment due December 31, 2011.The note has no ready market.The prevailing rate of interest for a note of this type is 10%.The present value of a CHF2,400,000 note payable in three equal annual installments of CHF800,000 at a 10% rate of interest is CHF1,989,600.The note will be reported on Dansko's 2011 statement of financial position at a carrying value of

On January 1, 2011, Jantzen Company Sold Land to Dansko