S-Corp Notes Receivable Question

[marliese]

Scenario: S-Corp purchased property for $30k and sold 2 months later for $51k with a carry back seller financed note via land contract ($450/mth pmt, 10% int, 30yr reverse amortized to get $51k). Books currently show Notes Receivable of $51k. How should the $21k difference be recorded since the income is being recorded as the $450/mth payments are being received? ($5,086/yr interest income and $314 Notes Receivable reduction)?

[JON]

Deferred Income

then record as income(gain) as received.