Page 4 CHAPTER Z 5) On December 31, 20x1 Allan Richards, a general building contractor, completed renovation of payment (on December 31, 20x1), as follows: a) A non-nterest bearing note due on December 31, 20x4 (3-year note) for:235,000 b) A promissory note due on December 31, 20x4 space for the Astor Company. Mr. Richards was offered three different forms Face Value: $ 210,000 4% Stated Interest Rate: Interest payment dates: December 31, 20x2, 20x3 and 20x4. c) A series of three cash payments to Mr. Richards: Each payment amount: $ 70,000 Payment dates: December 31, 20x1, December 31, 20x2 and December 31, 20x3. The fair value of the services is not known and the notes are not readily marketable. Under the current circumstances, the recent interest rate incurred by Mr. Richards was: The recent interest rate incurred by the Astor Company was 8% 6% IThe effective interest method of amortization is used by both parties to this transaction.] REQUIRED 1) Determine which form of payment Mr. Richards should select (from choices A, B or C above) (Reminder: Round to the nearest dollar.) and indicate WHY that form of payment was chosen. Based on your answer to (1) above (for the choice you selected): (a] Prepare the appropriate journal entry (ies) that Mr. Richards should make orn 2) December 31, 20x1. Prepare the appropriate journal entry (ies) on December 31, 20x2 Indicate the proper balance sheet presentation for the outstanding note receivable [b] [c] as of December 31, 20x2