On January 1, 20x1, an entity issues a 4-year, noninterest bearing, note payable amounting to $4,800,000 in exchange for equipment. The principal on the note is due in three equal annual installments payable every December 31. The effective interest rate on January 1, 20x1 is 14%.

Requirements:

1. Compute for current and noncurrent portions of the note payable on December 31, 20x2
2. Provide all the entries during the term of the note payable.