On January 1, 2017, Arden Farm Equipment Company sold a machine to Valco Brothers Farm accepting a note receivable in lieu of a cash payment. Valco gave Arden a 3 year, $120,000 note bearing interest at 8%. Interest payments are made annually. The market rate for a note of similar risk is 10%. Record the journal entry at the point of sale. Record the journal entry for the first year's interest payment. Calculate the amount of interest revenue recorded in year two. A) B) C) Selected information from PV Tables: Present Value of $1 8% 10% 9259390909 285734 82645 79383 75132 Present Value of Ordinary Annuity of $1 8% 92593 1.78326 2.57710 10% 90909 1.73554 2.48685