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Annual payments 1,000,000.

00
Present value factor 7.25
Present value of note 7,250,000.00

Notes receivable 10,000,000.00


Sales 7,250,000.00
Unearned interest income 2,750,000.00
Initial measurement 7,250,000.00
Less: Principal payment 1,000,000.00
Carrying amount 6,250,000.00
Multiply interest rate 8%
Interest revenue, 2021 500,000.00

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