1 & 2 are correct.

Cypress OI Company's December 31, 2024, balance sheet listed $735,000 of notes recelvable and $21,600 of interest receivable included in current assets. The following notes make up the notes receivable balance: Nate 1 Dated 8/31/2024, princlpal of $340,000 and interest at 12x due an 2/25/2025. Note 2 Dated 6/30/2924, principal of 5200,000 and interest due 3/31/2925. Note 35200 , eoe face value noninterest-bearing note doted 9/30/2024, due 3/31/2025. Hote was 1554ed In exchange for merchandise, The company records adjusting entries only at year-end. There were no other notes receivable outstanding during 2024. Required: 1. Determine the rate used to discount the noninterest-bearing note. 2. Determine the explicit interest rate on Note 2. 3. What is the amount of interest revenue that appears in the company's 2024 income statement related to these notes