Robinson Corp. makes a loan to Susan Co. and receives in exchange a four year, $40,0000 note bearing interest at 10 percent annually on December 31, 2017. The market rate of interest for note of similar risk is 12 percent. Payment of the note are received at the end of each year starting December 31, 2018.

(A) What is the present value of the note receivable?

(B) Was the note issued (or exchange) for a discount or premium? Support your answer and record the necessary journal entry from Robinson's perspective!