Crane Incorporated issued a $108,000, 5-year, zero-interest-bearing note to Pronghorn Corp. on January 1, 2020, and received $53,000 cash. Crane uses the effective interest method.

Required:

1. Using (1) a financial calculator, calculate the implicit interest rate. (Round answer to 2 decimal places, e.g. 52.25%.)
2. Prepare an effective interest amortization table for the note. (Round answers to 2 decimal places, e.g. 52.75.)
3. Prepare Crane's journal entry for the January 1, 2020 issuance.
4. Prepare Crane's journal entry for the December 31, 2022 recognition of interest.