What is carrying amount of note at end of second year

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Reference no: EM133010700

ABC Co. received the following note:

Face amount ?1,200,000

Effective interest 11%

Requirements:

Question 1: The note is due in lump sum in five years' time. What is the carrying amount of the note at the end of the second year?

Question 2: The note is due in four equal annual installments. The first installment is due one period from initial recognition. What is the carrying amount of the note at the end of the second year?

Question 3: The note is due in four equal annual installments. The first installment is due one period from initial recognition. How much is the balance of the unearned interest income (discount on note receivable) at the end of the second year?

Reference no: EM133010700

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