Calgary Developments Inc. sold a parcel from its inventory of land to Larson Corporation on June $1,$

$2022.$ In exchange, Larson Corporation signed a $4-$year promissory note with annual interest payments. Other information pertaining to this transaction follows:

$8$ marks

Cost of the land to Calgary Developments Inc. $ $45,191$

Face value of the note $ $130,200$

Larson Corporation typically borrows funds at the following rate $8\%$

The promissory note requires annual interest payments at the following rate $10\%$

Larson Corporation will make interest payments on May $31$ of each year. Calgary Developments follows IFRS and has a year end of May $31.$

Required:

$1.$ Calculate the present value of the note and prepare the journal entries for Calgary

Developments to account for the sale of the land. $(4$ marks$)$

$2.$ Prepare an amortization schedule for the note. $(2$ marks$)$

$3.$ Prepare journal entries for Calgary Developments on May $31,2026.(2$ marks$)$