What was the sales price of the property

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Question - On January 1, 2021, Sunland Company sold property to Blossom Company which originally cost Sunland $2,680,000. There was no established exchange price for this property. Blossom gave Sunland a $4,290,000 zero-interest-bearing note payable in three equal annual installments of $1,430,000 with the first payment due December 31, 2021. The note has no ready market. The prevailing rate of interest for a note of this type is 10%. What was the sales price of the property (i.e. what is the value of the note receivable/note payable at 1/1/21)?

Reference no: EM133096276

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