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On January 1 , 2 0 2 5 , Crown Company sold property to Leary Company in exchange for a $ 2 , 0 0

On January

1, 2025,

Crown Company sold property to Leary Company in exchange for a $

2, 000, 000

zero

-

interest

-

bearing note payable in

5

years. The present value of the note at

9 % (

the market rate

)

was $

1, 299, 863

on this date. What is the carrying amount of the note on January

1, 2026

assuming that the effective

-

interest method is used?

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