Question $14$

$3$ pts

On January $1$ Year $1,$ Champion Company issued a five$-$year zero$-$interest$-$bearing note with a face amount of $$60,000$ to Claiborne Co$.$ and received $$37,126$ in proceeds. The implicit rate of interest is $7\%.$ What is the amount of the discount related to this note payable reported on Champion's balance sheet on December $31$ Year $2?$

$$14,519$

$$22,874$

$$17,494$

$$20,275$