Sylvester Corporation sold land having a fair market value of $1,400,000 in exchange for a 10 year non-interest bearing promissory note in the face amount of $3,022,488. Sylvester purchased the land for $800,000 ten years ago. The customer purchasing the land from Sylvester would normally be required to pay 9% interest.
A.) Record the sale on Sylvester's books.
B.) Prepare any adjusting entry required at the end of the first year.