(a) On January 1, 2012, Fishbone Corporation sold a building that cost $271,800 and that had accumulated depreciation of $102,700 on the date of sale. Fishbone received as consideration a $261,500 non-interest-bearing note due on January 1, 2015. 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, 2012, was 9%. At what amount should the gain from the sale of the building be reported? (Round answers to 0 decimal places, e.g. $458,581.)
(b) Fishbone Corporation bought a new machine and agreed to pay for it in equal annual installments of $5,200 at the end of each of the next 10 years. Assuming that a prevailing interest rate of 10% applies to this contract, how much should Fishbone record as the cost of the machine? (Round answers to 0 decimal places, e.g. $458,581.)
(c) Fishbone Corporation purchased a special tractor on December 31, 2012. The purchase agreement stipulated that Fishbone should pay $21,880 at the time of purchase and $5,380 at the end of each of the next 10 years. The tractor should be recorded on December 31, 2012, at what amount, assuming an appropriate interest rate of 11%? (Round answers to 0 decimal places, e.g. $458,581.)
(d) Fishbone Corporation wants to withdraw $128,600 (including principal) from an investment fund at the end of each year for 10 years. What should be the required initial investment at the beginning of the first year if the fund earns 11%? (Round answers to 0 decimal places, e.g. $458,581.)