On December 31, 2019, Sheffield Company finished consulting services and accepted in exchange a promissory note with a face value of $775,000, a due date of December 31, 2022, and a stated rate of 6%, 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. Under the circumstances, the note is considered to have an appropriate imputed rate of interest of 12%.

The following interest factors are provided:

		Interest Rate
Table Factors For Three Periods		6%		12%
Future Value of 1		1.19102		1.40493
Present Value of 1		0.83962		0.71178
Future Value of Ordinary Annuity of 1		3.18360		3.37440
Present Value of Ordinary Annuity of 1		2.67301		2.40183

On December 31, 2019, Sheffield Company finished consulting services and accepted in exchange a promissory note with a face value of $775,000, a due date of December 31, 2022, and a stated rate of 6%, 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. Under the circumstances, the note is considered to have an appropriate imputed rate of interest of 12%. The following interest factors are provided: Interest Rate Table Factors For Three Periods Future Value of 1 Present Value of 1 Future Value of Ordinary Annuity of 1 Present Value of Ordinary Annuity of 1 6% 1.19102 0.83962 3.18360 2.67301 12% 1.40493 0.71178 3.37440 2.40183 Prepare a Schedule of Note Discount Amortization for Sheffield Company under the effective interest method. (Round an to 0 decimal places, e.g. 5,275.) Date Cash Interest (6%) Effective Interest (12%) Discount Amortized 12/31/19 $ 0 $ i $ i 12/31/20 46500 12/31/21 46500 12/31/22 46500 $ 139500 $ $ 111,685 Unamortized Discount Balance Present Value of Note $ 111685 $ i 775000