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Question - On June 1, 2014, Johnson and Sons sold equipment to James Landscaping Services. In exchange for a zero-interest bearing not with a face value of $55,000, with payment due in 12 months. The fair value of the equipment on the date of sale was $50,000. The amount of revenue to be recognized on this transaction in 2014 is
a. $55,000
b. $5,000
c. $50,000
d. $50,000 sales revenue and $2,917 interest revenue.
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