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On January 1, 2020, James Co. received a 10%, five year note from a customer. Interest is paid every December 31. The note has a

On January 1, 2020, James Co. received a 10%, five year note from a customer. Interest is paid every December 31. The note has a face value of 12,000,000. The effective rate on the date of the receipt of the note was 12%.

1. Determine the initial amount of the note. 2. Prepare an amortization table to show the balance of the note at the end of each reporting period from 2020-2024. 3. Compute for the interest income recognized by James during each period from 2020-2024.

Show your solution in tabular form. Use Microsoft Excel or Google Sheets.

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