PROBLEMS1.March Madness Corporation is having financial difficulty and therefore

PROBLEMS1.March Madness Corporation is having financial difficulty and therefore has asked ACC Bank to restructure its $3 million note outstanding. The present note has 3 years remaining and pays a current rate of interest of 10%. The present market rate for a loan of this nature is 12%. The note was issued at its face value. The note pays interest annually. REQUIRED:Presented below are three independent situations. Prepare the journal entry (if any) that March Madness Corporation would make for each of these restructurings on the first day of the restructuring only (you do not need to make any entries after the restructuring date):1.At December 31 2010 Aaron Corporation owes $500000 on a note payable due February 15 2011. It issues its audited financials on April 1of each year. How much of the note payable should be considered a current liability under the following circumstances:5.Cleveland Company purchased $80000 of 9% 5-year bonds of Greenwood Corporation for $74086 which provide an 11% return. It intends to hold these bonds to maturity. The fair market value of the securities at year-end is $75500. Assuming that the bonds are considered held-to-maturity investments prepare the journal entries for:6.Cleveland Company purchased $80000 of 9% 5-year bonds of Greenwood Corporation for $74086 which provide an 11% return. The fair market value of the securities at year-end is $75500. Assuming that the bonds are considered available-for-sale investments prepare the journal entries for:7.How would the answers to Problem #6 have differed if the securities had been trading securities (You don t have to show the journal entries again you can simply provide a brief statement about any differences).8.Peyton Imports is contemplating an agreement to lease equipment to a customer for five years. Peyton normally sells the asset for a cash price of $100000. Assuming that 8% is a reasonable rate of interest what must the quarterly lease payments (beginning at the inception of the lease) be in order for Peyton to recover its normal selling price as well as be compensated for financing the asset over the lease term?