Please show all of your work.

On Jan. 1,2020, Bobcat Const. purchased equipment from Gallatin Equipment. Bobcat gave a $100,000 promissory note payable to Gallatin with the following terms. Scenario 1:Loan terms: The note payable terms require a) a $12,000 payment on December 31 each year, b) and the $100,000 principal payment is due on December 31, 2022. The current market interest rate for similar loans is 12%. Instructions: Show your calculations! 1) Calculate the fair market value of the note 2) Record Bobcats journal entries for 2020. Term Loan: Cash Payment Interest Expense Principal Reduction Loan Balance Date 01/01/20 100,000 12/31/20 12,000 12,000 100,000 12/31/21 12,000 12.000 100,000 12/31/22 112.000 12,000 100,000 Totals 136,000 36,000 100,000 Accounting Journal Entries Debit Credit 01/01/20 12/31/20