the answers given are correct can i just get some explanation as to why... the logic behind it just is not making sense to me

Desat will provide the consulting services in exchange to a non-interest-bearing note with a face value of $285,000. Terms of the note require payments of Principal and Interest to be made each June 30th and December 31st for the next 4 years. Beach's normal cost of borrowing is 8%. What is the Service Revenue Desert, Co. will record at January 2, 2020? 285000 What is the Interest Revenue Desert, Co. will record on December 31, 2020? 0 What is the Carrying Value of the note on Desert. Co.'s December 31, 2020, Balance Sheet? 213750 PVS1(8440173503 PNS 089 1:31 Anonymous answered this 17.584 answers Was this answer heldur bi Solution 1: Semiannual payment on note = $285,000 /8 = $35,625 Service revenue to be recorded by Desert Co. = $35,625 * Cumulative PV factor at 4% for 8 periods ! = $35,625 * 6.73274 = $239,854 Solution 2: Carrying value on 30.06.2020 = $239,854 $239,8544% - $35,625 = $213,823 Interest revenue to be recorded on 31122020 = S213,823 * 4% = 58,553 Solution 3: Carrying value of note on 31.12.2020 balance sheet = $213,823 + $8.553 - $35625 = $186,751 Comment >