On january 1, 2021, crown company sold property to leary company. there was no established exchange price for the property, and leary gave crown a $5,000,000 zero-interest-bearing note payable in 5 equal annual installments of $800,000, with the first payment due december 31, 2021. the prevailing rate of interest for a note of this type is 9%. the present value of the note at 9% was $3,605,000 at january 1, 2021. what should be the balance of the discount on notes payable account on the books of leary at december 31, 2021 after adjusting entries are made, assuming that the effective-interest method is used?
a. $4,000,000.
b. $3,111,721.
c. $2,591,796.
d. $3,200,000.

Exercise 4-9presented below is information related to martinez corp. for the year 2017.net sales $1,399,500 write-off of inventory due to obsolescence $80,440cost of goods sold 788,200 depreciation expense omitted by accident in 2016 43,600selling expenses 65,800 casualty loss 53,900administrative expenses 53,500 cash dividends declared 43,300dividend revenue 22,100 retained earnings at december 31, 2016 1,042,400interest revenue 7,420 effective tax rate of 34% on all items exercise 4-9 presented below is information relateexercise 4-9 presented below is information relate prepare a multiple-step income statement for 2017. assume that 61,500 shares of common stock are outstanding. (round earnings per share to 2 decimal places, e. g. 1.49.)prepare a separate retained earnings statement for 2017. (list items that increase retained earnings first.)