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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