On January 2, 2021, Tripod Company receives a government loan of P2,000,000 paying a coupon interest of 1% per year. The loan is repayable at the end of year 6. Tripod Company’s borrowing cost is 7% per annum. The below-market interest is provided by the government to enable Tripod Company to bear cost of 1% per annum on the nominal value of the loan. What amount of income from government grant should Tripod Company recognized on December 31, 2022? What amount of deferred income from government grant should Tripod Company report on December 31, 2023?
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On January 2, 2021, Tripod Company receives a government loan of P2,000,000 paying a coupon interest of 1% per year. The loan is repayable at the end of year 6. Tripod Company’s borrowing cost is 7% per annum. The below-market interest is provided by the government to enable Tripod Company to bear cost of 1% per annum on the nominal value of the loan.
What amount of income from government grant should Tripod Company recognized on December 31, 2022?
What amount of deferred income from government grant should Tripod Company report on December 31, 2023?
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- Megabank granted an 8%, 3-year P 6,000,000 loan to Global Company on January 1, 2021. The interest on the loan is payable every December 31. Megabank incurred P 520,600 of direct origination cost but an origination fee of P 200,000 was charged against Global Company. The effective rate on the loan as a result of the origination fee and cost is now 6%. No. QUESTIONS Your Answer 1. What is the carrying value of the loan receivable on January 1, 2021 in Megabank's accounting books? 2. What is the carrying value of the loan receivable on December 31, 2023 in Megabank's accounting books?On 1 April 2020, Apollo Berhad made a RM1,000,000 loan from the bank at an interest rate of10 percent, equal to its effective interest rate for the development of the company's power generation facilities. On 1 April, the loan was obtained and RM300,000 was used on qualifying properties. On 1 April, the company deposited the remaining balance at a rate of 6% per annum in a bank yielding interest.On 31 December 2020, when the construction was finished and ready for use, the full amount was withdrawn and paid to the contractor. On 31 March 2021, the company returned the loan to the bank. As of 1 April 2021, power generation facilities were eligible for use in the undertaking. Requirement : (a) Calculate the net borrowing cost that should be capitalised as part of the cost of the new store and the finance cost that should be reported in the income statement for the year ended 31 March 2021. (b) Show the extracts from the income statement for the year ended 31 March 2021 and the statement…On January 1, 2021, a borrower was granted a loan by Qatar Bank. The loan interest is payable annually starting December 31, 2021 at an interest rate of 10%. The loan matures in five years on December 31, 2025. The principal amount of the loan is P4,000,000. The borrower was charged with origination fees in the amount of 350,000. The bank incurred P61,500 origination cost. What is the carrying amount of the loan receivable on December 31, 2021? a. 4,243,120 b. 4,000,000 c. 3,756,880 d.3,600,000
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- On 1 March 2024, Edutech (not a registered VAT vendor) borrowed R338 000 from Futures Bank at an interest rate of 12% per annum repayable over 4 years. The R338 000 was deposited into the bank account of Edutech. Edutech plans to use the funding to purchase furniture for the office collaboration spaces. The VAT rate is 15%. On 31 March 2024, Edutech made a down payment on the loan with an electronic funds transfer for R8 901. Required: Post the above transactions as recorded in the subsidiary journals for 1 March 2024 and 30 March 2024 to the general ledger of Edutech. Instructions: 1. Use a full stop to indicate any decimals (eg: 1000.01) 2. Round off to the second decimal after the full stop (eg: 50.56) 3. If no amount should be recorded in any of the numeric spaces, please indicate it by filling in a 0. (zero) 4. For numeric responses only show the amount, do not show the "R" (eg: 1000)Chifuyu Bank loaned P10,000,000 to Baji Company on January 1, 2020, the terms of the loan require principal payments of P2,000,000 each year for 5 years plus interest at 8%. The first principal and interest payment is due on December 31, 2020. Baji made the required payments on December 31, 2020, and December 31, 2021. However, Baji began to experience financial difficulties during 2022 which requires the bank to reassess the collectibility of the loan. On December 31, 2022, the bank determined that the remaining principal payments will be collected but the collection of the interest is unlikely. The bank accrued the interest for 2022. Expected Principal Payments December 31, 2023 P3,000,000 December 31, 2024 2,000,000 December 31, 2025 1,000,000 Note: Round off present value factors up to four decimal points; round off the final value up to two decimal points. E.g., 0.7812 and 123,518.25 Questions: How much is the impairment loss to be recorded in 2022? How much is the…Lugia Bank granted a P4,000,000 loan to Ho-oh Company on January 1, 2020. The annual interest of the loan is 12% payable semi-annually. The loan matures in two years. The effective interest rate on the loan is 16%. (Round off present value factors up to four decimal point; only round off up to two decimals the final value) Questions: 1. What is the initial carrying amount of the loan? 2. How much is the interest income for the year 2020? 3, What is the balance of the discount on the loan as of December 31, 2020?