USE THE FOLLOWING INFORMATION TO ANSWER THE QUESTION:

On January 1, 2018, ABC rendered services in exchange for a $100,000, 3 year, 4% note receivable. Interest is to be paid each December 31st and principal will be remitted at maturity. The customer's normal borrowing rate is 8%.

Required:

1. Determine the amount of Service Revenue ABC can recognize on Jan 1, 2018	$_______________________________
2. Determine the carrying value of the note at December 31, 2019:	$_______________________________
3. Determine the Total Interest Revenue ABC will recognize over the entire 3-year lending agreement.	$_______________________________