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.

Areal estate agent is considering changing her cell phone plan. there are three plans to choose from, all of which involve a monthly service charge of $20. plan a has a cost of $.42 a minute for daytime calls and $.17 a minute for evening calls. plan b has a charge of $.52 a minute for daytime calls and $.15 a minute for evening calls. plan c has a flat rate of $80 with 275 minutes of calls allowed per month and a charge of $.38 per minute beyond that, day or evening.a. determine the total charge under each plan for this case: 150 minutes of day calls and 70 minutes of evening calls in a month. (do not round intermediate calculations. round your answer to 2 decimal places. omit the "$" sign in your response.)c. if the agent will use the service for daytime calls, over what range of call minutes will each plan be optimal? (round each answer to the nearest whole number.include the indifference point itself in each answer.)d. suppose that the agent expects both daytime and evening calls. at what point (i.e., percentage of total call minutes used for daytime calls) would she be indifferent between plans a and b?