Question: On January 1 , 2 0 2 5 , Crown Company sold property to Leary Company in exchange for a $ 2 , 0 0

On January 1,2025, Crown Company sold property to Leary Company in exchange for a $2,000,000 zero-interest-bearing note payable in 5 years. The present value of the note at 9%(the market rate) was $1,299,863 on this date. What is the carrying amount of the note on January 1,2026 assuming that the effective-interest method is used?

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