On January 1, 2010, JFK Inc. acquired a building for 12,000,000. JFK paid 2,000,000 and signed a noninterest-bearing note for the balance which is payable in 4 annual installments every December 31 of each year. The prevailing interest rate for a note of this type is 12%. The present value of an ordinary annuity of 1 for four periods is 3.03735. a. Determine the present value of the note on January 1, 2010. b. Determine the discount on notes payable on January 1, 2010.