On December 31, 2017, Blossom Company signed a $1,152,800 note to Blue Bank. The market interest rate at that time was 12%. The stated interest rate on the note was 10%, payable annually. The note matures in 5 years. Unfortunately, because of lower sales, Blossoms financial situation worsened. On December 31, 2019, Blue Bank determined that it was probable that the company would pay back only $691,680 of the principal at maturity. However, it was considered likely that interest would continue to be paid, based on the $1,152,800 loan.

a. Determine the amount of cash Blossom received from the loan on December 31, 2017.

B. Prepare a note amortization schedule for Blue Bank up to December 31, 2019.

Note Amortization Schedule (Before Impairment)
Date		Cash Received		Interest Revenue		Increase in Carrying Amount		Carrying Amount of Note