On January 1, 2013 the Montgomery company agreed to purchase a building by making 6 pymts. The 1st 3 are to be $25,000 each, Dec. 31, 2013, 2014, 2015. The last 3 are to be $40,000 each and will be paid on 12/31 2016, 2017, & 2018. Montgomery borrowed other money at a 10% annual rate. 1. At what amount should Montgomery record the note payable & corresponding cost of the bldg on 1-1-13? 2. How much interest expense on this note will Montgomery recognize in 2013?