1. Lansing Company acquires a patent on January 1, Year 1, in exchange for a 3 year noninterest-bearing note of $120,000. There was no established exchange price for the patent and the note has no ready market. The prevailing rate of interest for a note of this type is 8% at the date of the exchange. The imputed interest rate is the prevailing interest rate of 8% The present value interest factor for an amount in 3 years discounted at 8% is 0.79383. What is the amount of the debit to Interest Expense on December 31, Year 3?