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XYZ's Software Development Division (SDD) has developed several architectural design software packages.

XYZ's Software Development Division (SDD) has developed several architectural design software packages. One software package that they have developed is being sold to an English Company for $310,000 or 385,000 pounds. The cost of developing the software was $255,000. As payment, XYZ has accepted a note receivable that is due in 5 years.

SDD has also developed a second software package. They incurred development costs of $500,000. They are trading this software package in exchange for a small office building. The fair market value of this building is $675,000.

In an Excel spreadsheet, make the appropriate accounting entry on XYZ's books for each software sale. Include 1–3 paragraphs discussing the accounting issues involved for each sale. Include a 450-1255 word discussion of the accounting issues involved for each sale.

Use $285,000 as the discounted value of the note receivable.

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