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PV of $1 Periods 3 5 8 10 12 20 2% .94 91 85 82 79 67 4% 89 .82 73 68 .62 46 6%

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PV of $1 Periods 3 5 8 10 12 20 2% .94 91 85 82 79 67 4% 89 .82 73 68 .62 46 6% 84 .74 .63 56 50 31 8 % 9 % 79 .68 .55 46 39 21 77 .65 50 42 36 18 Present Value of an Ordinary Annuity 2% 2.88 4.71 7.33 8.98 10.58 16.35 2.77 4.45 6.73 8.11 9.38 13.59 4% 6% 2.67 4.21 6.21 7.36 8.38 11.47 2.57 3.99 5.75 6.71 7.54 9.82 8% 2.53 3.89 5.53 6.41 7.16 9.13 9% Question 5 0.71 pts USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT (4) QUESTIONS: For all PV calculations, use the tables presented in #1 above. On January 1, 20x1, ABC rendered services to Smith Corporation and accepted a $200,000, 5 year note. In exchange, Smith agreed to make quarterly payments of P&I at the end of each Mar, Jun, Sept and Dec, with the first payment to be made on March 31, 20x1. An interest rate of 8% is imputed. Required: Use the information above to answer the next (4) questions: 1. Determine the amount of (1) PMT of P&I s(Question 1) 2. What amount of Service Revenue should $ ABC recognize on January 1, 20x1? 3. What amount of Interest Revenue should ABC recognize on this note for the year ending December 31, 20x3? (Hint: Use the Short-cut method) 4. What is the Carrying Value of the Note Receivable at December 31, 20x2? (Hint Use the short cut method) Required: Determine the amount of (1) PMT of P&l: $ 13849.29 Using the information presented in # 5 above, what amount of Service Revenue should ABC recognize on January 1, 20x1? (You must use the PV tables provided in #1 above. In this case, there should be no rounding errors.) 136000 DQuestion 7 0.71 pts Using the information presented in # 5 above , determine the amount of Interest Revenue ABC should recognize on their Income Statement for the year ended December 31, 20x3: (Hint: Use the short-cut method. Also, please use the tables provided in #1 to avoid any rounding differences.) Question 8 0.71 pts Using the information presented in # 5 above , determine the carrying value of the note receivable as of December 31, 20x2. $ (Hint: Use the short-cut method. Please use the tables provided in #1 above to avoid any rounding differences.)

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