80. Oblation Bank loaned P9,000,000 to a borrower on January 1, 2017. The terms of the loan were payment in full on January 1, 2011, plus annual interest payment of 12%. The interest payment was made as scheduled on January 1, 2018. However, due to financial setbacks, the borrower was unable to make the 2019 interest payment. The bank considered the loan impaired and projected the cash flows from the loan on December 31, 2019. The bank has accrued the interest on December 31, 2019, but did not continue to accrue interest for 2019 due to the impairment of the loan. The projected cash flows are: Date of cashflow Amount projected on December 31, 2019 December 31, 2020 P1,500,000 December 31, 2021 P2,000,000 December 31, 2022 P2,500,000 December 31, 2023 P3,000,000 Round off the PV factor to two decimal points.
80. Oblation Bank loaned P9,000,000 to a borrower on January 1, 2017. The terms of the loan were payment in full on January 1, 2011, plus annual interest payment of 12%. The interest payment was made as scheduled on January 1, 2018. However, due to financial setbacks, the borrower was unable to make the 2019 interest payment. The bank considered the loan impaired and projected the cash flows from the loan on December 31, 2019. The bank has accrued the interest on December 31, 2019, but did not continue to accrue interest for 2019 due to the impairment of the loan. The projected cash flows are: Date of cashflow Amount projected on December 31, 2019 December 31, 2020 P1,500,000 December 31, 2021 P2,000,000 December 31, 2022 P2,500,000 December 31, 2023 P3,000,000 Round off the PV factor to two decimal points.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:80. Oblation Bank loaned P9,000,000 to a borrower on January 1, 2017. The terms of the loan were
payment in full on January 1, 2011, plus annual interest payment of 12%. The interest payment was
made as scheduled on January 1, 2018. However, due to financial setbacks, the borrower was unable
to make the 2019 interest payment. The bank considered the loan impaired and projected the cash
flows from the loan on December 31, 2019. The bank has accrued the interest on December 31, 2019,
but did not continue to accrue interest for 2019 due to the impairment of the loan. The projected cash
flows are: Date of cashflow Amount projected on December 31, 2019 December 31, 2020 P1,500,000
December 31, 2021 P2,000,000 December 31, 2022 P2,500,000 December 31, 2023 P3,000,000 Round
off the PV factor to two decimal points.
What is the loan impairment loss for 2019?
What is the interest income for 2020?
What is the carrying amount of the loan receivable on December 31, 2021?
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