Jem Riane Delos Reyes Bank granted a loan of P3,000,000 to a borrower on January 1, 2021.The terms of the loan were payment in full on December 31, 2026 plus annual interest paymentat 8% every December 31. The first interest payment was made on December 31, 2021.However, on December 31, 2021, due to financial difficulties, the borrower informed FreetownBank that it would probably miss the interest payments for the next two years. After that, theborrower expects to resume the annual interest payment but the principal would be paid onDecember 31, 2027 or one year late with interest paid for that additional year. Accordingly, thepayments from the borrower are scheduled as follows:Date of Flow Cash FlowAmount12/31/2022 No interest payment Nil12/31/2023 No interest payment Nil12/31/2024 Interest payment12/31/2025 Interest payment12/31/2026 Interest payment12/31/2027 Interest paymentP 240,000240,000240,000240,0003,000,000Principal payment34. The carrying amount of the loan receivable at December 31, 2022 is:35. The interest income to be recognized in 2024 is:

given, loan amount = $3000,000 which is not paid for first two years.

Jem Riane Delos Reyes Bank granted a loan of P3,000,000 to a borrower on January 1, 2021. The terms of the loan were payment in full on December 31, 2026 plus annual interest payment at 8% every December 31. The first interest payment was made on December 31, 2021. However, on December 31, 2021, due to financial difficulties, the borrower informed Freetown Bank that it would probably miss the interest payments for the next two years. After that, the borrower expects to resume the annual interest payment but the principal would be paid on December 31, 2027 or ane year late with interest paid for that additional year. Accordingly, the payments from the borrower are scheduled as follows: Amount 12/31/2022 No interest payment Nil 12/31/2023 No interest payment Nil P 240,000 240,000 240,000 240,000 3,000,000 Date of Flow Cash Flow 12/31/2024 Interest payment 12/31/2025 Interest payment 12/31/2026 Interest payment 12/31/2027 Interest payment Principal payment

Jem Riane Delos Reyes Bank granted a loan of P3,000,000 to a borrower on January 1, 2021. The terms of the loan were payment in full on December 31, 2026 plus annual interest payment at 8% every December 31. The first interest payment was made on December 31, 2021. However, on December 31, 2021, due to financial difficulties, the borrower informed Freetown Bank that it would probably miss the interest payments for the next two years. After that, the borrower expects to resume the annual interest payment but the principal would be paid on December 31, 2027 or ane year late with interest paid for that additional year. Accordingly, the payments from the borrower are scheduled as follows: Amount 12/31/2022 No interest payment Nil 12/31/2023 No interest payment Nil P 240,000 240,000 240,000 240,000 3,000,000 Date of Flow Cash Flow 12/31/2024 Interest payment 12/31/2025 Interest payment 12/31/2026 Interest payment 12/31/2027 Interest payment Principal payment

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Lowlife Company defaulted on a $200,000 loan that was due on December 31, 2024. The bank has agreed to allow Lowlife to repay the $200,000 by making a series of equal annual payments beginning on December 31, 2025. Required: 1. Calculate the required annual payment of the bank's Interest rate is 10% and four payments are to be made. 2. Calculate the required annual payment of the bank's Interest rate is 8% and five payments are to be made. 3. If the bank's Interest rate is 10%, how many annual payments of $28,156 would be required to repay the debt? 4. If three payments of $72,070 are to be made, what interest rate is the bank charging Lowlife? Note: For all requirements, Use tables, Excel, or a financial calculator. (FV of $1. PV of $1. FVA of $1. PVA of $1, FVAD of $1 and PVAD of $1) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate the required annual payment if the bank's interest rate is 10% and four payments…
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Questions: 1. The carrying amount of the loan receivable at December 31, 2022 is?2. The interest income to be recognized in 2024 is? Please include solutions. Thank you!
Magnolia Corp. granted a loan to a borrower on January 1, 2023. The interest on the loan is 12% payable annually starting December 31, 2023. The loan matures in three years on December 31, 2025. Data related to the loan are: Principal amount10,000,000Origination fees charged against the borrower470,560Direct origination cost incurred235,000 1. The carrying amount of the loan as of January 1, 2023 is A. 9,529,440 B. 9,764,440 C. 10,235,000 D. 10,235,560 2. The carrying amount of the loan as of December 31, 2023 is A. 9,833,817 B. 9,912,213 C. 10,000,00 D. 10,235,560 3. The current portion of the note on December 31, 2023 is A. Nil B. 78,396 C. 9,833,817 D. 9,912,213 4. The noncurrent portion of the note on December 31, 2023 is A. Nil B. 9,833,817 C. 9,912,213 D. 10,000,000
The Electric Car Corporation borrowed $3,000,000 from the Bank of Walnut Creek on October 1, 2021. The loan was from an SBA (Small Business Administration) program that required interest only payments annually at the low rate of 1.75%. At the end of 5 years, on October 1, 2026 the entire loan of $3,000,000 must be repaid. In the event it is not repaid, the interest rate of 1.75% will be increased retroactively at a rate of 7.5%. In order to assure that the loan can be repaid on October 1, 2026, the Chief Financial Officer wants to set up a special fund to contribute to each and every year in order to have sufficient funds to repay the loan in full on October 1, 2026. The Investment firm of J. Edward and Associates of Emeryville, California has an investment fund available that has an annual fixed return of 5%. The Electric Car Corporation wants to start making an annual deposit to the fund beginning in one year starting on October 1, 2022, and for each of the next three years of…
What is he initial carrying value of the loans receivable as of Dec 31, 2019?
On December 31, 2020, JKL Bank granted a P5,000,000 loan to a borrower with 10% stated rate payable annually and maturing in 5 years. The loan was discounted at the market interest rate of 12%. Unfortunately, the financial condition of the borrower worsened because of lower revenue. On December 31 ,2022, the bank determined that the borrower would pay back only P3,000,000 of the principal at maturity. However, it was considered likely that interest would continue to be paid on the P5,000,000 loan. The present value of 1 at 12% is 0.57 for five periods and 0.71 for three periods. In addition, the present value of an ordinary annuity of 1 at 12% is 3.60 for five periods and 2.40 for three periods. Compute for the impairment loss on loan receivable to be recognized in 2022?

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