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Chris Garcia Bank granted a loan to a borrower on January 1,2021. The interest on the loan is 10% payable annually starting December 31,2021. The loan matures in three years on December 31,2023. Data related to the loan are: Principal amount ₱4,000,000 Origination fees charged against the borrower 342,100 Direct origination cost incurred 150,020   Based on the above data, answer the following: (Round off present value factors to four decimal places) 1. The carrying amount of the loan as of December 31,2021 is  a. ₱3,864,870 c. ₱4,000,000 b. ₱3,872,105 d. ₱4,496,411

Chris Garcia Bank granted a loan to a borrower on January 1,2021. The interest on the loan is 10% payable annually starting December 31,2021. The loan matures in three years on December 31,2023. Data related to the loan are: Principal amount ₱4,000,000 Origination fees charged against the borrower 342,100 Direct origination cost incurred 150,020   Based on the above data, answer the following: (Round off present value factors to four decimal places) 1. The carrying amount of the loan as of December 31,2021 is  a. ₱3,864,870 c. ₱4,000,000 b. ₱3,872,105 d. ₱4,496,411

CONCEPTS IN FED.TAX.,2020-W/ACCESS
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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Chris Garcia Bank granted a loan to a borrower on January 1,2021. The interest on the loan is 10% payable annually starting December 31,2021. The loan matures in three years on December 31,2023. Data related to the loan are:

Principal amount ₱4,000,000

Origination fees charged against the borrower 342,100

Direct origination cost incurred 150,020

 

Based on the above data, answer the following: (Round off present value factors to four decimal places)

1. The carrying amount of the loan as of December 31,2021 is 

a. ₱3,864,870 c. ₱4,000,000

b. ₱3,872,105 d. ₱4,496,411

2. The current portion of the loan as of December 31,2021 is

a. Nil c. ₱63,784

b. ₱56,950 d. ₱400,000

 

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