Answer the following questions:

1. Brestovacki corporation issued a $50,000 5 year 5% note to Jernigan corporation on Jan 1st, 2023 and received a piece of equipment that normally sells for 38, 912. The note requires annual interest payment each December 31st. The market interest rate for a note of similar risk is 11%. A. 1. Financial calculator or 2. Excel function rate, calculate the implicit interest rate. B. Prepare bees journal entry for the January 1 2023 issuance. C. Prepare the entry for the December 31st 2023 interest payment using the effective interest method.

2. At December 31st 2023 burr corporation owes 500,000 on a note payable due February 15, 2024. Assume that burr follows IFRS and that the financial statements are completed and released on February 2024. A. If burr refines the obligation by issuing a long-term note on February 14th and by using the proceeds to pay off the note due on February 15th, how much of the 500,000 should be reported as a current liability at December 31st 2023? B. If burr pays off the note on February 15, 2024, and then borrows 1 million on a long-term basis on March 1. How much of the 500,000 should be reported as a current liability at December 31st 2023? C. How would the answers to part a. And b.b different if burr prepare financial statements in the accordance with ASPE?