Kyle Co. agreed to loan Taylor Retail Inc. On 1/1/Year 1. Taylor gave a $ 74,000 zero interest-bearing note due in 5 years to Kyle. Assume that the market interest rate to discount the note is 6%.

Question: Prepare an amortization schedule for the note using the effective interest method. (Show work)

Year	Cash Interest	Interest revenue	Discount amortized	Carrying amount of note
Date of receipt
End of year 1
End of year 2
End of year 3
End of year 4
End of year 5