On Jan. 1, 2020, Big Corp. makes a loan to Marie Co. and receives in exchange a S10,000, three year note bearing interest at 10% annually. The market rate of interest for a note of similar risk is 12%. Calculate the present value of the note and prepare the journal entry to record the receipt of the note. Prepare a three-year discount amortization and interest income schedule for Big Corp using the effective interest method. Prepare the adjusting journal entry on December 31, 2020.

Date	(A) Cash Received	(B) Interest Income	(C) Discount Amortized = (B) - (A)	NotesReceivableCarryingamount
1/1/2020
12/31/2020
12/31/2021
12/31/2022				$10 000