What is the gain or loss on the sale of the land

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Reference no: EM13792538

On January 1, 20Y8 Smith Company sold land to ASP, Inc. and accepted a 2 year, $500,000 face value note as payment. 6% interest is due each December 31. ASP's market rate of borrowing is 12%. Smith Company originally purchased the land for 80,000 in 20Y1.

I. What is the fair market value of the land at the date of exchange?

II. What is the gain or loss on the sale of the land?

Reference no: EM13792538

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