Reference no: EM132467409
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.)