2. On January 1, 2010, Mark Company received a $12,000 note receivable in exchange for equipment sold. The stated rate of interest was 8%, payable annually on December 31. The prevailing interest rate at the time of the exchange was determined to be 10%. The note matures on December 31, 2015.

A. Compute the discount on the note.

B. Journalize the above transaction that occurred on January 1, 2010.

C. Record the receipt of cash and discount amortization on 12/31/2010.

D. Record the receipt of cash on 12/31/2015.