Equal lostalment inc. issues a 5-year 4% $12,000 note payable in order to finance the acquisition of equipment. The note is issued on December 31, 2016. The principal has to be paid back over 5 equal instalments on December 31 of each year, starting in 2017. Interest on the note's balance is payable each year on the same date. a) Prepare the payment schedule using the fixed principal method. Round numbers to the nearest dollar. b) Explain how the payment done on December 31, 2017 impacts the financial statements. Impacts c) What are the current and non-current portions of the note on December 31, 2017 financial statements (after the payment): Current: Non-Current: 6 QUESTION 5 (6 marks) Equal Payment inc. issues a 5-year 4% $12,000 note payable in order to finance the acquisition of equipment. The note is issued on December 31, 2016. The note has to be paid back through 5 equal payments of $2,695.53, payable on December 31 each year starting in 2017. Prepare the payment schedule with the blended principal and interest method. Round numbers to the nearest cent. Which method (blended or fixed principal) would you recommend to report a profit as high as possible for the first three years? Explain why