Please show all of your work. On Jan. 1,2020, Bobcat Const. purchased equipment from Gallatin Equipment. Bobcat gavea 0% interest $124,905 promissory note payable to Gallatin with the following terms.Scenario 2: Loan terms. The note payable terms requires 3 equal payments of $41,635 on December 31 each year.The current market interest rate for similar loans is 12%.Instructions: Show your calculations!1) Detemine the fair market value of the note ->2) Record Bobcats journal entries for 2020.CashInterestDiscountUnamortizedNoteNoteDateРaymentExpenseAmortizedDiscountBalanceCarrying Value01/01/2024,905124,905 $100,00012/31/2041,63512,00012,00012,90583,270 $70,36512/31/2141,6358,4448,4444,46141,635 $37,17412/31/2241,6354,4614,461(0)124,90524,90524,905Accounting Journal EntriesAccounting Journal EntriesDebitCredit01/01/2012/31/20

Lease payment The purpose of implementing the lease system into the business to reduce the capital…

0% interest $124,905 promissory note payable to Gallatin with the following terms. Scenario 2: Loan terms. The note payable terms requires 3 equal payments of $41,635 on December 31 each year. The current market interest rate for similar loans is 12%. nstructions: Show your calculations! ) Detemine the fair market value of the note > 2) Record Bobcats joumal entries for 2020. Cash Interest Discount Unamortized Note Note Date Payment Expense Amortized Discount Balance Carrying Value 1/01/20 24,905 124,905 $ 100,000