Each of the three columns refers to an independent case. All data represent amounts as of January 1, the date the long- term notes receivable were issued, except for the interest income, which is for the life of the note. Assume annual interest payments. Fill in the missing boxes.

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Item Notes receivable, face value Initial carrying value Market rate Stated rate Term of bonds (in years Note receivable discount Interest income over the note term Case 1 Case 2 Case 3 $900,000 $1,000,000 $2,000,000 A S 901,819 8% 7% 10% 8% 20 years 153,244 5 years F 1200,000