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Problem 7-6 (Algo) Notes receivable; solving for unknowns; financial statement effects [LO7-7] Cypress Oil Company's December 31, 2027, balance sheet listed $1,002,000 of notes receivable and $25,000 of interest receivable included in current assets. The following notes make up the notes receivable balance: Note 1 Dated 8/31/2027, principal of $420,00@ and interest at 14% due on 2/28/2028. Note 2 Dated 6/30/2027, principal of $270,00@ and interest due 3/31/2028. Note 3 $320,000 face value noninterest-bearing note dated 9/30/2027, due 3/31/2028. Note was issued in exchange for merchandise. The company records adjusting entries only at year-end. There were no other notes receivable outstanding during 2027. Required: 1. Determine the rate used to discount the noninterest-bearing note. 2. Determine the explicit interest rate on Note 2. 3. What is the amount of interest revenue that appears in the company's 2027 income statement related to these notes? 1. Discount rate 2. Interest rate 3. Interest revenue