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On January 1, 2022, Ace Company finished landscaping services and accepted in exchange a 10% $400,000 promissory note with a due date of December 31,
On January 1, 2022, Ace Company finished landscaping services and accepted in exchange a 10% $400,000 promissory note with a due date of December 31, 2024. Interest is receivable at December 31 each year. Notes with similar risk have a market rate of interest of 5%. Set financial calculator to zero decimal place. Required: (a) Determine the value of the following: N = Answer 1 Question 2 I/Y = Answer 2 Question 2 PMT = $Answer 3 Question 2 FV = $Answer 4 Question 2 (b) The present value of the note was $Answer 5 Question 2 (c) Prepare a Schedule of Note Discount/Premium Amortization for Ace Company under
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