Question 5 (15 marks) On January 1, Year 2, ABC Company, a public company, sold machinery for $30,000 cash and a 2 year, 3.5% interest bearing note of $40,000, maturity date December 31, Year 3. Market rate for a note with similar risk is 5.1%. Required: Use the gross method 1. Prepare all journal entries from the sale date to maturity date. (use gross method) 2. Assume that after ABC received the payment on December 31, Year 2, the buyer renegotiated the terms on the note as follows: two interest payments of $1,200 at the end of Years 3 and 4 and $36,000 at December 31, Year 4. Current market rate is 5.6%. Prepare the journal entry, if any, for this revised note receivable. Would your answer be different if this was a private company reporting under ASPE? Explain and include any change in the calculation of the impairment loss, if any. Round to the nearest dollar and show all work for full marks