On December 31, 2021, the CPA Finance Company had a P3,000,000 note receivable from IntAcc1 Company. The note bears 10% interest. The books reported accrued interest of P300,000 on this date. Because of financial distress suffered by IntAcc1 Company, CPA Finance agreed to the restructuring and modification of the terms as follows: (1) Reduction of principal to P2,000,000; (2) Reduction of interest to 7% payable annually beginning December 31, 2022; (3) Accrued interest on December 31, 2021 is condoned; and (4) Principal payment was reset to December 31, 2024. How much impairment loss should CPA Finance Company record on December 31, 2021 as a result of restructuring? Round off present value figures to two decimal places.
60. On December 31, 2021, the CPA Finance Company had a P3,000,000 note receivable from IntAcc1 Company. The note bears 10% interest. The books reported accrued interest of P300,000 on this date. Because of financial distress suffered by IntAcc1 Company, CPA Finance agreed to the restructuring and modification of the terms as follows:
(1) Reduction of principal to P2,000,000;
(2) Reduction of interest to 7% payable annually beginning December 31, 2022;
(3) Accrued interest on December 31, 2021 is condoned; and
(4) Principal payment was reset to December 31, 2024.
How much impairment loss should CPA Finance Company record on December 31, 2021 as a result of restructuring? Round off present value figures to two decimal places.
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