RequiredIgnore income taxes. Using the analytical framework discussed in the cha

RequiredIgnore income taxes. Using the analytical framework discussed in the chapter indicate the effect of the preceding information for 2011 2012 and 2013 under each of the following valuation methods.a. Valuation of the note at the present value of future cash flows using the historical market interest rate of 8 percent (Approach 1).b. Valuation of the note at the present value of future cash flows adjusting the note to fair value upon changes in market interest rates and including unrealized gains and losses in net income (Approach 3).c. Why is retained earnings on December 31 2013 equal to $101878 in both cases despite the reporting of different amounts of net income each year?