Problem 3: On January 1, 2016, Freddie Mac agreed to construct a building for ABC Corporation for $100,000. ABC must pay $40,000 upon signing and $20,000 at the end of 2016, 2017, and 2018. Expected construction costs are $10,000 for 2016, $20,000 for 2017, and $30,000 for 2018. Assume that these cash flows occur at the end of each year. Also assume that the appropriate interest rate for this contract is 10%. 1. Prepare the Amortization Schedule for Cash received Year Balance (January 1) Interest Revenue Amount Reduction in Principle Balance (December 31) 2. Prepare the Amortization Schedule for Cash payment Year Balance (January 1) Interest Expense Payment Reduction in Principle Balance (December 31) Accessibusy unavaiable 3. Calculate the amount and nature of revenue and expense that Freddie Mac would recognize during 2016, 2017, and 2018, assuming the company uses the Completed- contract method. 4. Repeat part 3 using the installment method. (Show calculations where necessary)