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Question - On April 1, 2020, Linden sold a patent to Bell Company in exchange for a $300,000 noninterest-bearing note due on April 1, 2021. There was no established exchange price for the patent, and the note had no ready market. The prevailing rate of interest for a note of this type at April 1, 2020, was 9%. The collection of the note receivable from Bell is reasonably assured.
Calculate the amount that Linden should record as note receivable and sales revenue on April 1, 2020.
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