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Discuss formulate a schedule of note discount amortization

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On December 31, 2016, Omega Corp Consultants finished consultation services and accepted in exchange a promissory note with a face value of $800,000, a due date of December 31, 2019, and a stated rate of 5%, with interest receivable at the end of each year. The market rate of interest for a similar note is 10%

The following interest factors are provided:

                                                         Interest        Rate

Table Factors For Three Periods                    5%             10%

Future Value of 1                                   1.15763            1.33100

Present Value of                                1 .86384               .75132

Future Value of Ordinary Annuity of 1     3.15250             3.31000

Present Value of Ordinary Annuity of 1   2.72325              2.48685

Question 1: Formulate a Schedule of Note Discount Amortization for Omega Corp under the effective interest method. (Round to whole dollars.)

Reference no: EM132467409

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