To determine the present value of the debt, we need to use the present value formula:
Present value = Future value / (1 + r)^n
where r is the interest rate and n is the number of periods.
In this case, the future value of the debt is $171,500 - $34,300 = $137,200, which is the amount financed by the note. The interest rate is not given, so we will assume it to be 6% per year.
The note will be paid in five equal year-end payments, so n = 5. The present value of the debt as of January 1 of this year is:
Present value = $137,200 / (1 + 6%)^5
Present value = $99,646
Therefore, the present value of the debt as of January 1 of this year is $99,646.