Need help on question 2

On January 1,2019 , Pitt Company sold a patent to Chatham Inc. which had a carrying value on Pitt's books of $10,000. Chatham gave Pitt a $60,000, noninterest-bearing note payable in five equal annual installments of $12,000 with the first payment due and paid on January 1,2020 . There was no price for the patent, and the note has no ready market value. The prevailing rate of interest for a note of this type at January 12019 , is 12% (Click here to access the PV tables to use with this problem.) Required: 1. Prepare a schedule showing the income or loss before income taxes that Pitt should record for the years ended December 31 , 202019 , required, round your answers to the nearest cent. 2. If Pitt inadvertently failed to discount the note and instead recorded it at its gross value, what would be the effect on income or loss before income taxes for the year ended December 31,2019 ? If required, round your answer to two decimal places. Income before income taxes would be by $ X for 2019