*E7-27B (Impairments) On December 31 2014 State Construction Company signed a $1000000 note to Third National Bank. The market interest rate at that time was 15%. The stated interest rate on the note was 10% payable annually. The note matures in 5 years. Unfortunately because of lower sales State Constructions financial situation worsened. On December 31 2016 Third National Bank determined that it was probable that the company would pay back only $700000 of the principal at maturity. However it was considered likely that interest would continue to be paid based on the $1000000 loan.Instructions(a) Determine the amount of cash State Construction received from the loan on December 31 2014.(b) Prepare a note amortization schedule for Third National Bank up to December 31 2016.(c) Determine the loss on impairment that Third National Bank should recognize on December 31

  
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