xtended a 5,000,000, 10% loan to a borrower. The principal is due in 4 years time but interest is due annually every Dec. 31. Sore bank incurred direct loan origination costs of 261,986 and charged the borrower origination fee of 2%. Compute for the carrying amounts of the loan on Jan. 1 , 20x1. and Dec 31 20x1, respectively.

xtended a 5,000,000, 10% loan to a borrower. The principal is due in 4 years time but interest is due annually every Dec. 31. Sore bank incurred direct loan origination costs of 261,986 and charged the borrower origination fee of 2%. Compute for the carrying amounts of the loan on Jan. 1 , 20x1. and Dec 31 20x1, respectively.

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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