National Bank granted a loan to borrower on January 1, 2021. The interest on the loan is 10% payable annually starting December 31, 2021. The loan matures in thee years on December 21, 2023. Principal amount 4,000,000 Origination fee charges against the borrower 342,100 Direct Origination Cost incurred 150,000 What is the carrying amount of the loan receivable on January 1, 2021? a. 4,000,000 b. 3,807,900 c. 4,150,000
National Bank granted a loan to borrower on January 1, 2021. The interest on the loan is 10% payable annually starting December 31, 2021. The loan matures in thee years on December 21, 2023. Principal amount 4,000,000 Origination fee charges against the borrower 342,100 Direct Origination Cost incurred 150,000 What is the carrying amount of the loan receivable on January 1, 2021? a. 4,000,000 b. 3,807,900 c. 4,150,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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National Bank granted a loan to borrower on January 1, 2021. The interest on the loan is 10% payable annually starting December 31, 2021. The loan matures in thee years on December 21, 2023.
Principal amount 4,000,000
Origination fee charges against the borrower 342,100
Direct Origination Cost incurred 150,000
What is the carrying amount of the loan receivable on January 1, 2021?
a. 4,000,000
b. 3,807,900
c. 4,150,000
d. 3,657,900
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