Question: Show your solution. 1. (Given: Face amount - 800,000; Effective interest= 14% ). The note is due in four equal annual installments. The first installment

Show your solution.

1. (Given: Face amount - 800,000; Effective interest= 14% ). The note is due in four equal annual installments. The first installment is due one period from initial recognition. What is the carrying amount of the note at initial recognition?

2. ABC Co. received the following note: Face amount 1,200,000; Effective interest 11%. 59. The note is due in four equal annual installments. The first installment is due one period from initial recognition. How much is the balance of the unearned interest income at the end of the second year?

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