On January 1, 2020, Sukuna Bank loaned 4,000,000 to Satori Company. The interest of the loan is 7% payable at every year-end within the next 2 years. The effective rate on the loan is 9%. Data related to the loan: Direct Origination cost 450,000 Origination fees (275,000) Determine the initial carrying amount of the loan.

On January 1, 2020, Sukuna Bank loaned 4,000,000 to Satori Company. The interest of the loan is 7% payable at every year-end within the next 2 years. The effective rate on the loan is 9%. Data related to the loan: Direct Origination cost 450,000 Origination fees (275,000) Determine the initial carrying amount of the loan.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 19P

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