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.

Which of the following statements is correct? a major disadvantage of a partnership relative to a corporation is the fact that federal income taxes must be paid by the partners rather than by the firm itself. in a typical partnership, liability for other partners’ misdeeds is limited to the amount of a particular partner’s investment in the business.true in a limited partnership, the limited partners have voting control, while the general partner has operating control over the business, and the limited partners are individually responsible, on a pro rata basis, for the firm’s debts in the event of bankruptcy. partnerships have more difficulty attracting large amounts of capital than corporations because of such factors as unlimited liability, the need to reorganize when a partner dies, and the illiquidity of partnership interests.