Problem 610 (AICPA Adapted) At year-end,.Jovia1 Company received two Pl, 000, 000 notes receivable from customers in exchange for services rendered. on both notes, interest is calculated on the outstanding principal balance at the annual rate of 3% and payable at maturity. The note from Zeta Company, made under customary trade terms, is due in nine months and the note from Yola Company is due 1n ve years. The market interest rate for similar notes was 8%. The present value of 1 due 1n nine months is .944 and the present value of 1 due in ve years is ..68 1- At what amount should the note receivable from Zeta Company be reported at year-end? - a. 1,000,000 b. 944,000 c. ' 965,200 d. 972,320 * 2. At what amount should the note receivable from Yola Company be reported at year-end? . a. 1,000,000 b; 782,000 0. 932,000 , ' d. ') 680,000