Calculate the financial statement effects at the date of issue for each of the following discounted notes (also, refer to Chapter 8, “Accounts Payable, Commitments, Contingencies, and Risks”):

a. $10,000,000 note for one year at a 10% market interest rate.

b. $20,000,000 note for three years at a 12% market interest rate.

c. $5,000,000 note for 10 years at a 10% market interest rate.

d. What amount of cash is necessary to repay these notes at maturity, assuming no other changes during the term of the notes? (Hint: No further calculations are necessary to answer this part.)P-698