on january 1 of year 1, jacobs company sells land in return for a $56,000 note, issued by andress company. the note is a $56,000, 8%, annual interest-bearing note. andress agrees to repay the $56,000 proceeds on december 31 of year 2. the prevailing interest rate on similar notes is 11%. assume that the cost of the land is equal to the fair value of the note.