On December 31, 2014, Conchita Martinez Company signed a $1,030,000 note to Sauk City Bank. The market interest rate at that time was 10%. The stated interest rate on the note was 8%, payable annually. The note matures in 5 years. Unfortunately, because of lower sales, Conchita Martinezs financial situation worsened. On December 31, 2016, Sauk City Bank determined that it was probable that the company would pay back only $618,000 of the principal at maturity. However, it was considered likely that interest would continue to be paid, based on the $1,030,000 loan.

A.Determine the amount of cash Conchita Martinez received from the loan on December 31, 2014.

B.Prepare a note amortization schedule for Sauk City Bank up to December 31, 2016.