Question 2 Dharma, a public company, sold a piece of equipment at the beginning of Year 1, receiving a $21,000, two-year 1% note. Interest is paid at the end of each year. Market interest rates are assume to be 10% (a) Calculate the present value of the note receivable (b) Prepare entries for the sale, interest revenue, and cash collection each year for two years. Use the gross method to account for the note.