How do you solve number 1 part b?

DAY 21-CLASS PREP QUESTIONS P9. 513-5z0 Chapter 10-related: 1. Similar to the discussion in Chp. 7 of non-interest bearing notes as related to Notes Receivable, the current chapter (chp. 10) discusses non-interest bearing notes from the other side of the transaction, as a Notes Payable. The computations of present value and the effective interest amortization are the same. On 1/1/17, XYZ Co. purchases equipment by issuing an $800,000, 5-year, non-interest bearing note. The market rate for obligations of this nature is 12%. XYZ Co. will pay off the note in five equal installments of $160,000 due at the end of each year over the life of the note. a. Prepare the JE at 1/1/17. b. Prepare a complete effective-interest amortization table for the 5 years of the note payable. c. Prepare the JE at 12/31/19. check figures: 1/1/17 Discount on N/P $223,235;12/31/19 end of year CV $270,409. 2. What does it mean for a transaction to have commercial substance? Provide an example and explain why it has commercial substance. tvtune Cosn flons nang as wt YAnG. If a transaction has commercial substance, what are the rules for recording gains and losses? Why? If a transaction lacks commercial substance, what are the rules for recording gains and losses? Why? 3. Pv-on D iscoum on NIP 113,235 900,000 don ot Cash 113,18 s7u.TuS ma 3 100,000