On January 1, 2014, Mixon Co. borrowed cash from First City Bank by issuing a $90,000 face value, three-year term note that had a 7 percent annual interest rate. The note is to be repaid by making annual cash payments of $34,295 that include both interest and principal on December 31 of each year. Mixon used the proceeds from the loan to purchase land that generated rental revenues of $45,000 cash per year.

Required

a.

Prepare an amortization schedule for the three-year period. (Round your answers to the nearest whole dollar amount.)

Mixon Co.

Year	Principal Balance on January 1	Cash Payments December 31	Applied to Interest	Applied to Principal	Principal Balance End of Period
2014
2015
2016