On January 1, 20x1, ABC Bank extended a 10%, P1,000,000 loan to XYZ. Principal is due on January 1, 20x4 but interests are due annually every January 1. ABC Bank accrued direct loan origination costs of P12,000 and indirect loan origination costs of P8,000. In addition, ABC Bank charged XYZ a 6-point non-refundable loan origination fee. The effective interest after considering capitalizable cost is 12%. On December 31, 20x3, the carrying value of the loan receivable is approximately The correct answer is: 982,189
On January 1, 20x1, ABC Bank extended a 10%, P1,000,000 loan to XYZ. Principal is due on January 1, 20x4 but interests are due annually every January 1. ABC Bank accrued direct loan origination costs of P12,000 and indirect loan origination costs of P8,000. In addition, ABC Bank charged XYZ a 6-point non-refundable loan origination fee. The effective interest after considering capitalizable cost is 12%. On December 31, 20x3, the carrying value of the loan receivable is approximately The correct answer is: 982,189
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 10MC: On January 1, 2019, Park Company accepted a 36,000, non-interest-bearing, 3-year note from a major...
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21. On January 1, 20x1, ABC Bank extended a 10%, P1,000,000 loan to XYZ. Principal is due on January 1, 20x4 but interests are due annually every January 1. ABC Bank accrued direct loan origination costs of P12,000 and indirect loan origination costs of P8,000. In addition, ABC Bank charged XYZ a 6-point non-refundable loan origination fee. The effective interest after considering capitalizable cost is 12%. On December 31, 20x3, the carrying value of the loan receivable is approximately
The correct answer is: 982,189
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