Question

*Do not round any answer until your final answer. Round your final answer to the nearest whole dollar. When entering your final answer, do not use commas or $ sign. (Sorry...Canvas is very sensitive and will mark your answer incorrect due to rounding and punctuation.) Due to possible rounding differences, all answer solutions are programmed as acceptable that are +/- 1. For example, if the correct answer is $54,372, all possible answer solutions that would be accepted would be 54,371, 54372, and 54,373.

PV of $1	Periods	3	5	8	10	12	20
	2%	.94	.91	.85	.82	.79	.67
	4%	.89	.82	.73	.68	.62	.46
	6%	.84	.74	.63	.56	.50	.31
	8%	.79	.68	.55	.46	.39	.21
	9%	.77	.65	.50	.42	.36	.18
Present Value of an Ordinary Annuity
	2%	2.88	4.71	7.33	8.98	10.58	16.35
	4%	2.77	4.45	6.73	8.11	9.38	13.59
	6%	2.67	4.21	6.21	7.36	8.38	11.47
	8%	2.57	3.99	5.75	6.71	7.54	9.82
	9%	2.53	3.89	5.53	6.41	7.16	9.13

On January 1, 20x1, 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, 20x1	$_______________________________
2. Determine the carrying value of the note at December 31, 20x2:	$_______________________________
3. Determine the Total Interest Revenue ABC will recognize over the entire 3-year lending agreement.	$_______________________________

Answer 1