Please show how you got the answers! On December $31,2024,$ Vaughn Company finished consulting services and accepted in exchange a promissory note with a face value

of $$560,000,$ a due date of December $31,2027,$ and a stated interest rate of $5\%,$ with interest receivable at the end of each year. The

fair value of the services is not readily determinable and the note is not readily marketable. Under the circumstances, the note is

considered to have an appropriate imputed rate of interest of $10\%.$

The following interest factors are provided:

$($a$)$

Your answer is correct.

Determine the present value of the note. $($Round answer to $0$ decimal places, e$.$g$.5,275.)$

Prepare a Schedule of the Note Discount Amortization for Vaughn Company under the effective interest method. $($Round answers

to $0$ decimal places, e$.$g$.5,275.)$

Vaughn Company

Schedule of Note Discount Amortization

Effective Interest Method

$5\%$ Note Discounted at $10\%($Imputed$)$

Date

Cash Interest

Effective Interest

Discount Amortized

$\frac{12}{31}\frac{?}{24}$$

$\frac{12}{31}\frac{?}{25}$

$\frac{12}{31}\frac{?}{26}$

$\frac{12}{31}\frac{?}{27}$