E$7\mathrm{.}14($LO $6,8)($Notes Receivable with Zero Interest Rate$)$ By December $31,2023,$ Clearing Corp. had performed a significant amount of environmental consulting services for Rank Ltd$.$ Rank was short of cash, and Clearing agreed to accept a $$200,000,$ non$$interest$-$bearing note due December $31,2025,$ as payment in full. Rank is a bit of a credit risk and typically borrows funds at a rate of $12\%.$ Clearing is much more creditworthy and has various lines of credit at $9\%.$ Clearing reports under IFRS.

Instructions

Prepare the journal entry to record the transaction on December $31,2023,$ for Clearing.

Assuming Clearing$$s fiscal year end is December $31,$ prepare the journal entry required at December $31,2024.$

Assuming Clearing$$s fiscal year end is December $31,$ prepare the journal entry required at December $31,2025.$

What are the amount and classification of the note on Clearing Corp.$$s SFP as at December $31,2024?$

Assume instead that Clearing reports under ASPE and uses the straight$-$line method to amortize the discount on the note. What would the interest income be relating to the note for $2024$ and $2025?$