The prevailing rate of interest for a note of this type on


On January 1, 2014, Fishbone Corporation sold a building that cost $250,000and that had accumulated depreciation of $100,000on the date of sale. Fishbone received as consideration a $240,000non-interest-bearing note due on January 1, 2017. There was no established exchange price for the building, and the note had no ready market.

The prevailing rate of interest for a note of this type on January 1, 2014, was9%. At what amount should the gain from the sale of the building be reported?

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Cost Accounting: The prevailing rate of interest for a note of this type on
Reference No:- TGS0816739

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