Preparing Entries and Interest Schedule for Long$-$Term Note Receivable; Effective Interest Method

On January $1$ of Year $1,$ Stealth Company sold a machine $($classified as inventory$)$ that had a list price of $$100,800.$ The customer paid $$16,800$ cash and signed a three$-$year, $$84,000$ note that specified a stated rate of $3\%.$ Annual interest on the full amount of the principal is payable each December $31.$ The principal is payable on December $31,$ three years later. The market rate for a note of this risk is $10\%.$

Required

a$.$ Compute the present value of this note.

b$.$ Prepare an effective interest schedule for this note.

c$.$ Prepare entries required by Stealth for this note on January $1$ of Year $1,$ and December $31$ of Year $1,$ Year $2,$ and Year $3.$