On Jan 1, 2018, the North Sea Company purchased a highsea platform for $ 12,000,000 and paid $2,000,000 as a downpyament while the balance will be paid over the next 10 years in installments of $500,000 every six months , starting July 1, 2018. The market rate on Jan 1, 2018 was 6%.

Requirements: a. For the how much the North Sea Company should recognize the platform on Jan 1, 2018? Show your calculation.

b. On Jan 1, 2025, the company will pay installment payment of $500,000. How much of this payment represents a payment of the principal and how much of it represents a payment of the interest? Show your calculation (fill in the following table Jan 1 2018 Jan 2025). Date Cash Paid Interest Exp. P Payment Carrying Value 1-Jan-18 $ - $ - $ - $ . 1-Jul-18 1-Jan-19 1-Jul-19 1-Jan-20 1-Jul-20 1-Jan-21 1-Jul-21 1-Jan-22 1-Jul-22 1-Jan-23 1-Jul-23 1-Jan-24 1-Jul-24 1-Jan-25

c. What is the total interest expense for the year ended on Dec 31, 2021?

d. What will be the carrying value of the notes on Dec 31, 2024?