Land in exchange for stock and mortgage note

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An investor supplies 20 acres of land in exchange for stock and a mortgage note. The land has been appraised at $70,000 and the investor receives 15,000 shares of stock and a note with a face value of $55,000. The note requires Beacon to pay interest at the rate of 10% per year and the principal (face amount) is due in 5 years.

Reference no: EM131519323

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