On January 1, 2020, a borrower signed a long-term note, face amount, $260,000; time to maturity, three years; stated rate of interest, 8%. The market rate of interest of 10% determined the cash received by the borrower. The note will be paid in three equal annual installments of $100,888 each December 31 (which is also the end of the accounting period for the borrower).

Required

a. Compute the cash received by the borrower and prepare a debt amortization schedule.

• Note: Round your answer to the nearest whole dollar.

1. Compute the cash received by the borrower.

$Answer

2. Prepare a debt amortization schedule.

• Note: Round each amount in the table to the nearest whole dollar.
• Note: Use a negative sign for the "Reduction in N.P." amounts.

Date	Cash	Interest Expense	Reduction in N.P.	Carrying Value
Jan. 1, 2020				Answer
Dec. 31, 2020	Answer	Answer	Answer	Answer
Dec. 31, 2021	Answer	Answer	Answer	Answer
Dec. 31, 2022	Answer	Answer	Answer	Answer
Total	Answer	Answer	Answer

b. Provide the required entries for the borrower for the issuance of the note on January 1, 2020, and

the interest payments in 2020, 2021, and 2022.