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$1.$Peachtree Company borrows $$40,000$ from the local bank at $7\%$ interest. The term of the note is $6$ years, and the annual payments remain constant at $$8,392.$ Determine the decrease in notes payable that Peachtree Company should record in the first year.

$2.$Goss Company reported the following on its income statement for the current year:

Interest expense $$440,000$

Income before income tax expense $2,332,000$

What is the times interest earned ratio for the year?

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