Principal Installment 2,700,000

Multiply by: PV of Ordinary Annuity 2.3216

PV of Note 6,268,320
Add: Downpayment 900,000
Building, 01/01/20 7,168,320 no.18

PV of Note 6,268,320
Multiply by: Interest Rate 14%
Interest Expense (2020) 877,565 no. 19

Date Payment Interest Expense Principal Present Value

1/1/2020 6,268,320
12/31/20 2,700,000 877,565 1,822,435 4,445,585
12/31/21 2,700,000 622,424 2,077,576 2,368,309 no.20

5,696,010 no.21

671,441 no.22

PV of Principal 8,388,600
Add: PV of Interest 3,207,389
PV of New Liability 11,595,989 no.23

Notes Payable 14,400,000

Add: Accumulated Interest 1,728,000
Carrying Amount of Old Liability 16,128,000
Less: PV of New Liability 11,595,989
Gain on Extinguishment 4,532,011 no.24

Principal 13,200,000
Multiply by: Interest Rate 8%
Interest, 2020 1,056,000 no.25