J-Hope Company experiences financial difficulties and began defaulting on the loan to International Bank. The loan receivable has a carrying amount of P3,300,000 including the accrued interest of P300,000 on December 31, 2019. International Bank projected the cash flows from the loan on December 31, 2019: Date of cash flow Amount projected PV of 1 December 31, 2020 P500,000 Year 1 0.8929 December 31, 2021 1,000,000 Year 2 0.7972 December 31, 2022 1,500,000 Year 3 0.7118 The prevailing rate is 12% How much is the impairment loss?
J-Hope Company experiences financial difficulties and began defaulting on the loan to International Bank.
The loan receivable has a carrying amount of P3,300,000 including the accrued interest of P300,000 on December 31, 2019. International Bank projected the
Date of cash flow Amount projected PV of 1
December 31, 2020 P500,000 Year 1 0.8929
December 31, 2021 1,000,000 Year 2 0.7972
December 31, 2022 1,500,000 Year 3 0.7118
The prevailing rate is 12%
How much is the impairment loss?
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