On January $1,2022,$ Vidalia Company accepted a $14\%$ note, dated January $1,2022,$ with a face amount of $$2,440,000$ in exchange for cash. The note is due in $10$ years. For notes of similar risk and maturity, the market interest rate is $16\%.$ Interest is paid each December $31.$

Future Value of $$1$ table Future Value of an Ordinary Annuity table

Future Value of an Annuity Due table

Present Value of $$1$ table Present Value of an Ordinary Annuity table

Present Value of an Annuity Due table

Requirements

a$.$ Determine the present value of the note at January $1,2022.$

b$.$ Prepare the journal entry at the issuance of the note.

c$.$ Prepare the journal entry to record the interest revenue for the first $2$ years.