On August 1, 2019, Colombo Co.s treasurer signed a note promising to pay $120,000 on December 31, 2019. The proceeds of the note were $116,400.

a. Calculate the discount rate used by the lender. (Enter your answer as a percentage rounded to 1 decimal place (i.e., 32.1).)

b. Calculate the effective interest rate (APR) on the loan. (Enter your answer as a percentage rounded to 1 decimal place (i.e., 32.1).)

C-1. Use the horizontal model to show the effects of signing the note and the receipt of the cash proceeds on August 1, 2019. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.) Balance Sheet Assets Liabilities + Stockholders' Equity Net Income = Income Statement Net Income II Revenues Expenses II = Il =