On January 1, 2021, Tina Bank extended a 5-year, 12%, P5,000,000 loan to Mr. Prospecio. Principal is due on January 1, 2022 but interests are due semi-annually every June 30 and December 31. Tina Bank incurred direct origination cost of P486,087 and indirect origination cost of P50,000. In addition, Tina Bank charged Mr. Prospecio a 2-point nonrefundable origination fee. How much is the carrying value of the note on December 31, 2022?
On January 1, 2021, Tina Bank extended a 5-year, 12%, P5,000,000 loan to Mr. Prospecio. Principal is due on January 1, 2022 but interests are due semi-annually every June 30 and December 31. Tina Bank incurred direct origination cost of P486,087 and indirect origination cost of P50,000. In addition, Tina Bank charged Mr. Prospecio a 2-point nonrefundable origination fee. How much is the carrying value of the note on December 31, 2022?
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 1PA: On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10%...
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