A single-payment note promises $67,280 at maturity. The issuer of the now exchanges it for land with a fair value of $50,000. The exchange occurs two years before the maturity date on the note.
a. What is the implicit interest rate for this single-payment note?
b. Using the implicit interest rate, construct an amortization schedule for the note. Show the carrying value of the note at the start of each year, the amount of interest expense for each year, the amount reducing or increasing the carrying value each year, and the carrying value at the end of the year.