c. Prepare entries required by Stealth for this note on January 1 of Year 1, and December 31 of Year 1 , Year 2, and Year 3. - Note: Round answers to the nearest whole dollar. a. Present value of note: 5 c. \begin{tabular}{|c|c|c|c|c|c|} \hline Date & Account Name & & Dr. & & Cr. \\ \hline \multirow[t]{5}{*}{ Jan. 1, Year 1} & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & To record sale of equipment. & & & & \\ \hline \multirow[t]{4}{*}{ Dec. 31 , Year 1} & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & To record interest on note. & & & & \\ \hline \multirow[t]{4}{*}{ Dec. 31, Year 2} & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & To record interest on note. & & & & \\ \hline \multirow[t]{4}{*}{ Dec 31, Year 3} & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & To record interest on note. & 3 & & A & \\ \hline \multirow[t]{3}{*}{ Dec. 31, Year 3} & & & & & \\ \hline & & & & & \\ \hline & To record settlement of note. & & & & \\ \hline \end{tabular} Preparing Entries and Interest Schedule for Long-Term Note Receivable; Effective Interest Method On January 1 of Year 1. Stealth Company sold a machine (classified as inventory) that had a list price of $97,200. The customer paid $16,200 cash and signed a three-year, $81,000 note that specified a stated rate of 3%. Annual interest on the full amount of the principal is payable each December 31. The principal is payable on December 31, three years later. The market rate for a note of this risk is 10%. Required a. Compute the present value of this note. b. Prepare an effective interest schedule for this note. c. Prepare entries required by Stealth for this note on January 1 of Year 1 , and December 31 of Year 1 , Year 2 , and Year 3. - Note: Round answers to the nearest whole dollar a. Present value of note: s b