On December 31, 2016, Geosue Company finished consultation services for Nolan Corporation and accepted in exchange a promissory note with a face value of $900,000, a due date of December 31, 2019, and a stated rate of 7%, with interest receivable at the end of each year. The fair value of the services is not readily determinable and the note is not readily marketable. However, a similar note is considered to have a market rate of interest of 9%.

Required:

1. Determine the present value of the note.

2. Prepare an effective interest amortization schedule for Geosue relative to this note. (Round to whole dollars.)