On January 1, 2020 , the lending company made a 200,000 8% loan . The interest is receivable at the end of each year , with the principal amount to be received at the end of 5 years . As of December 31, 2020 the interest for the current year has not been recer nor recorded because the borrower is experiencing financial difficulties . The lending company negotiated a restructuring of the loa The payment of all of the interest based on the original will be delayed until the end the 5 year loan term In addition , the amount of principal repayment will be dropped from P 200,000 to P 100,000 The prevailing interest rate for similar type of the loan as of December 312020 is 10 %The loan impairment loss to be recognize in 2020 profit or loss is Select the correct response 77,492 P 67,700 73,506
On January 1, 2020 , the lending company made a 200,000 8% loan . The interest is receivable at the end of each year , with the principal amount to be received at the end of 5 years . As of December 31, 2020 the interest for the current year has not been recer nor recorded because the borrower is experiencing financial difficulties . The lending company negotiated a restructuring of the loa The payment of all of the interest based on the original will be delayed until the end the 5 year loan term In addition , the amount of principal repayment will be dropped from P 200,000 to P 100,000 The prevailing interest rate for similar type of the loan as of December 312020 is 10 %The loan impairment loss to be recognize in 2020 profit or loss is Select the correct response 77,492 P 67,700 73,506
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2020 , the lending company made a 200,000 8% loan . The interest is receivable at the end of each year , with the principal amount to be received at the end of 5 years . As of December 31, 2020 the interest for the current year has not been recer nor recorded because the borrower is experiencing financial difficulties . The lending company negotiated a restructuring of the loa The payment of all of the interest based on the original will be delayed until the end the 5 year loan term In addition , the amount of principal repayment will be dropped from P 200,000 to P 100,000 The prevailing interest rate for similar type of the loan as of December 312020 is 10 %The loan impairment loss to be recognize in 2020 profit or loss is Select the correct response 77,492 P 67,700 73,506
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