Question 3: Suppose Hammer Consulting Co. provided consulting services to Duder Inc. on December 31, Year 1, but has decided to allow Duder to pay the balance due over time. Hammer Consulting is considering several different note options below. The market rate of interest for a company of Duder's risk level is 10%. A. For each option, determine the appropriate amount of service revenue that Hammer would record on December 31, Year 1 (the date of the issuance) and the amount of interest revenue Hammer would record for the full year ended December 31, Year 3 (the second year of the life of the note). Use the Present Value tables provided at the end of chapter 7 notes, and do not round the factors. Round all answers to the nearest whole dollar (including interest and cash payments for each year in your calculation). Option 1: Hammer Consulting Co. will require Duder to make a down payment of $30,000 on 12/31/YR1 and the remainder in the form of a $90,000, 6% note due in 6 years. Interest payments will be due semi- annually. Option 2: Hammer Consulting Co. will provide the consulting services in exchange for a 4-year, $150,000 non-interest bearing note. Interest is compounded quarterly. Service Revenue at 12/31/YR1 Interest Revenue for the year ended 12/31/YR3 For requirements B-C below, assume that Hammer Consulting Co. opts for Option #1 above. B. Prepare an amortization table. Use the following headings: Date Cash Interest Rev. Disc. Amortized C. What is the total amount of interest revenue Hammer will earn over the life of the note?