$|$D$6.27($LOT$)($Expected Cash Flows$)$ On December $31,2025,$ Conchita Martinez Company signed

a $$1,000,000$ note to Sauk. City Bank. The market interest rate at that time was $127.$ The stated inter$-$

est rate on the note was $10\%,$ payahle annually. The note matures in $3$ years. Unfortanately, because

of lower sales, Conchita Martinez's financial situation worsened. On December $31,2027,$ Saak City

Bank determined that it was probable that the company would pay back only $$600,000$ of the principal

at maturity. However, it was considered likely that interest would continue to be paid, based on the

$$1,000,000$ loan.

Instructions

a$.$ Determine the amount of cash Conchita Martinez received from the loan on December $31,2025.$

b$.$ Prepare a note amortization schedule for Sauk City Bank up to December $31,2027.$

c$.$ Determine the loss on impairment that Sauk City Bank shoald recognize on December $31,2027.$ show work on excel