(Answered) Oliver incsellsan old piece of equipmenton december 31st

Accounting

Oliver, Inc.sellsan old piece of equipmenton December 31st, 2015, agreeing to accept $10,000 in cash with a second payment one month later of $10,000, and a note receivable that pays interest annually and matures 2 years from now of $60,000. The note receivable portion has a stated interest rate of 5%, while similar investments pay a 9% interest rate. Oliver's accounting records show the equipment has a historical cost of $90,000, and a book value of $70,000.

a) Record the journal entries necessary during 2015 (the year of issuance).

b) Record the journal entries necessary during 2016.

c) Record the journal entries necessary during 2017 (the year of maturity).

From the PV/FV tables, 2 period duration:	4%	5%	9%
Present value of an ordinary annuity	1.8861	1.8594	1.7591

Present value of an annuity due	1.9615	1.9524	1.9174

Future value of an ordinary annuity	2.04	2.05	2.09

Future value of an annuity due	2.1216	2.1525	2.2781

Present value of a single sum	0.9246	0.9070	0.8417

Future value of a single sum	1.0816	1.1025	1.1881

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