On August 31, 2022, Fulton Company finished consultation services and accepted in exchange a promissory note with a face value of $880,000, a due date of August 31, 2025, and a stated rate of 5%, with interest receivable at the end of each year (8/31/23, 8/31/24, and 8/31/25). The fair value of the services is not readily determinable, and the note is not readily marketable. Under the circumstances, the note is considered to have an appropriate imputed rate of interest of 8%.

Instructions (show all of your work):

a) Determine the present value of the note.

b) Prepare a Schedule of Note Discount Amortization for Fulton Company under the effective interest method using Excel.