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On December 31, 2016, Red Company finished consultation services and accepted in exchange a promissory note with a face value of 800,000, a due date

On December 31, 2016, Red Company finished consultation services and accepted in exchange a promissory note with a face value of 800,000, a due date of December 31, 2019, and a stated rate of 5%, with interest receivable at the end of each year. The note is considered to have an appropriate imputed rate of interest of 10%. Determine the present value of the note.

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