a Directions: Review the following scenario and answer the questions that follow.Scenario: The farm loan office receives a check in the amount of $20,500 fromthe sale of corn. The check is dated November 5th. The borrower brings the checkin on November 8th. The purpose listed on FSA-2040 indicates that the use ofproceeds is to make FSA installments. The borrower has two FSA loans and aprotective advance to pay real estate taxes:Loan TypeAnnual OperatingReal EstateProtective Advance for realestate taxes plus interestPayment Due(P&I)$15,100$10,900$5,000Priority of Amount To BePayment Applied1. What is the payment date of credit?2. What is the priority of application and what amount would be applied toeach loan? (Enter your answers in the table above.)

To determine the payment date of credit, consider the date the check was received, which is November…

Loan Type Annual Operating Real Estate Protective Advance for real estate taxes plus interest Payment Due (P&I) $15,100 $10,900 $5,000 Priority of Payment Amount To Be Applied 1. What is the payment date of credit? Offe 2. What is the priority of application and what amount would be applied to each loan? (Enter your answers in the table above.)

Loan Type Annual Operating Real Estate Protective Advance for real estate taxes plus interest Payment Due (P&I) $15,100 $10,900 $5,000 Priority of Payment Amount To Be Applied 1. What is the payment date of credit? Offe 2. What is the priority of application and what amount would be applied to each loan? (Enter your answers in the table above.)

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 61P

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