On November 1, Year 6, Bob the Builder purchases a lottery ticket after having a dream in which a stranger gave him a giant fortune cookie. A week later, he finds out that he won $1,000,000. On December 1, Year 6, he cashes in his lottery ticket and forms a corporation called Fortune Cookie Inc. (FCI, hereafter) with his lottery money. When FCI is formed, there is no other assets or liabilities. From the formation of FCI to the end of Year 10, the following transaction is the only transaction that has happened: FCI issues an installment note on January 1, Year 7 (with a required yield of 6%) in exchange for the commercial building that it purchases from Mr. Mac. The note calls for three equal blended payments of 680,000 that are to be made at January 1, Year 8, Year 9, and Year 10. Note that FCIs fiscal year end is December 31. (1) Calculate the present value of the note at the issuance on January 1, Year 7. [4 marks] (2) Prepare the amortization table using your PV in (1). Note that the carrying value should be zero (or very close to zero due to the rounding error) at the last payment date (January 1, Year 10). [5 marks] (3) Your answer to (1) is the total liability at January 1, Year 7. Right? What is total liability at December 31, Year 7? [6 marks] (4) Your answer to (3) will be reported in the balance sheet at December 31, Year 7 as total liability. Right? Out of the total liability, how much would be classified as current liability? [7 marks]