On January 1, 2019, Sparky, Inc. rendered services to ABC Co. in exchange for a $378,000, 5 year note. The terms of the agreement require ABC to make semi-annual installment payments of P&I with the first installment due July 1st. An annual interest rate of 8% is imputed. Each payment is to be received on July 1 and Jan 1. Sparkys year end is December 31st.

Please show your work.

1) what amount of service revenue can Sparky record on January 1, 2019?

2) what amount of interest revenue should be recognized on this note for the year ending Dec 31, 2020?

3) what is the carrying value of the note receivable at December 31, 2020?