Exhibit 13-03 On January 1, 2017, Train, Inc. accepted an $80,000, non-interest bearing 3 year note in exchange for equipment it sold to Steam Company. Train originally purchased the equipment for $125,000, and it had a book value of $75,000 on the date of the sale. The note was non-interest-bearing. An assumed 11% interest rate is implicit in the agreement. Actual information for 11%, three periods, follows: b. Present value of 1 A Present value of annuity of 1 alco 15$30,000 Why acc. Dep is $30,0 Why is it a loss? why the Discont? 0.73119 2.44371 13. Refer to Exhibit 13-03. What amount should Train record for the discount on Notes Receivable? C a. $58,495 $21,505 C C. $16,505 C d. $0 NR. FV 80,000 (-) 35 (-) present rate of NR 58,495 NR AD 80,000 50,000 DISC.Ne (AV facturat 11% for 3 years is 0.73119) Loss 16,504.80 Discount on Notes receivable (21,505 80,000X, 73119 = 58,495 y is it present valve of 1? and not present value of annuity of 1? Eqv. 14. Refer to Exhibit 13-03. What amount would Train record as interest income on December 31, 2017? 80,000 X11% X.731196,434 why are we multiplying the face Valve of the note by the assumed interest rate and then Multiplying that by the present y