World Bank loaned P9,000,000 to aProblem 7-13 (IAA)borrower on January 1,December 31, 2021.The bank considered the loan impaired and projected thecash flows from the loan on December 31, 2022. The bank hasAmount projectedon December 31, 20221,500,0002,000,0002,500,0003,000,000accrued the interest on December 31, 2022.Date of cash flowDecember 31, 2023December 31, 2024December 31, 2025December 31, 2026The present value of 1 at 12% is .89 for one period, .80 fortwo periods, .71 for three periods, and .64 for four periods.1. What amount should be reported as loan impairment lossfor 2022?a. 2,370,000b. 3,450,000c. 6,630,000d. 2,450,0002. What amount should be reported as interest income for2023?795,600b.a.900,000180,000d.C.0.3. What is the carrying amount of the loan receivable onDecember 31, 2023?a. 5,925,600b. 4,845,600c. 6,330,000d. 7,500,000

SOLUTION WORKING NOTE DEC 31 2023 (1500000*0.89) 1335000 DEC 31 2024 (2000000*0.80) 1600000…

Answered: Problem 7-13 (IAA) D 2025, plus annual…

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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Short-Term Debt Expected to Be Refinanced On December 31, 2019, Excello Electric Company had 1 million of short-term notes payable due February 7, 2020. Excello expected to refinance these notes on a long-term basis. On January 15, 2020, the company issued bonds with a face value of 900,000 for 882,000. On January 22, 2020, the proceeds from the bond issue plus additional cash held by Excello on December 31, 2019, were used to liquidate the 1 million of short-term notes. The December 31, 2019, balance sheet is issued on February 12, 2020. Required: Prepare a partial balance sheet as of December 31, 2019, showing how the 1 million of short-term notes payable should be disclosed. Include an appropriate footnote for proper disclosure.
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