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On January 1,2016, Al Salem Company lent Al Nasser Inc. an amount for which Al Nasser...

On January 1,2016, Al Salem Company lent Al Nasser Inc. an amount for which Al Nasser Issued a promissory note of $100,000 value. The stated interest rate is 9%, whereas the market rate for notes of similar risks is 8%. The interest is received at the end of each year till December 31, 2020.

Required:

Calculate the present value of the note and compare it to its Face Value.

Journalize the issuance of the note receivable on January 1,2016.

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