On December 31, 2024, Bramble Company finished consulting services and accepted in exchange a promissory note...

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On December 31, 2024, Bramble Company finished consulting services and accepted in exchange a promissory note with a face value of $1,040,000, a due date of December 31, 2027, and a stated interest rate of 5%, with interest receivable at the end of each year. The fair value of the services is not readily determinable and the note is not readily marketable. Under the circumstances, the note is considered to have an appropriate imputed rate of interest of 10% The following interest factors are provided: Table Factors For Three Periods Future Value of 1 Present Value of 1 Future Value of Ordinary Annuity of 1 Present Value of Ordinary Annuity of 1 (a) ✓ Your answer is correct. Present value of the note $ (b) eTextbook and Medial Date 12/31/24 Determine the present value of the note. (Round answer to O decimal places, e.g. 5,275.) 12/31/25 12/31/26 12/31/27 $ Interest Rate $ 5% Cash Interest 1.15763 0.86384 3.15250 2.72325 Prepare a Schedule of the Note Discount Amortization for Bramble Company under the effective interest method. (Round answers to 0 decimal places, e.g. 5,275.) 10% 1.33100 0.751315 3.31000 $ 2.48685 910.684 Effective Interest Attempts: 1 of 5 used Bramble Company Schedule of Note Discount Amortization Effective Interest Method 5% Note Discounted at 10% (Imputed) $ $ Discount Amortized Unamorti Ba On December 31, 2024, Bramble Company finished consulting services and accepted in exchange a promissory note with a face value of $1,040,000, a due date of December 31, 2027, and a stated interest rate of 5%, with interest receivable at the end of each year. The fair value of the services is not readily determinable and the note is not readily marketable. Under the circumstances, the note is considered to have an appropriate imputed rate of interest of 10% The following interest factors are provided: Table Factors For Three Periods Future Value of 1 Present Value of 1 Future Value of Ordinary Annuity of 1 Present Value of Ordinary Annuity of 1 (a) ✓ Your answer is correct. Present value of the note $ (b) eTextbook and Medial Date 12/31/24 Determine the present value of the note. (Round answer to O decimal places, e.g. 5,275.) 12/31/25 12/31/26 12/31/27 $ Interest Rate $ 5% Cash Interest 1.15763 0.86384 3.15250 2.72325 Prepare a Schedule of the Note Discount Amortization for Bramble Company under the effective interest method. (Round answers to 0 decimal places, e.g. 5,275.) 10% 1.33100 0.751315 3.31000 $ 2.48685 910.684 Effective Interest Attempts: 1 of 5 used Bramble Company Schedule of Note Discount Amortization Effective Interest Method 5% Note Discounted at 10% (Imputed) $ $ Discount Amortized Unamorti Ba

Answer rating: 100% (QA)

PV FV PV factor PV 1040000 0751315 PV 782782 b Year 1 Date Cash Interest Effective Interest ... View the full answer