On Jan 1, 2010, Majed Company purchased a crane for $600,000 that will be paid on an stallment basis of $50,000 on July 1 and Jan 1, starting July 1, 2010 over the next 6 years. The prevailing market rate on Jan 1, 2010 was 8%.

Requirements:

(1) What is the purchase price of the crane?

(2) Create the amortization table for the period 2010-2016

(3) What is the interest expense for the year-end on Dec 31, 2012?

(4) What is the carrying value of the notes payable that should be reported on the balance sheet of Majed on Dec 31, 2014?

(5) What is the principal payment of the notes payable that should be reported on the balance sheet of Majed as a short term liability on Dec 31, 2014?