Philippine Bank granted a loan to a borrower on January 1, 2017. The interest on the loan is 8% payable anually starting December 31, 2017. The loan matures in three years on December 31, 2019. Principal amount 3,000,000 Origination fee charged against the borrower 100,000 Direct origination cost incurred 260,300 After considering the origination fee charged to the borrower and the direct origination cost incurred, the effective rate on the loan is 6%. 3. What is the carrying amount of the loan receivable on December 31, 2017? a. 3,000,000 b. 3,160,300 c. 3,109,918 d. 3,210,682 4. What is the interest income for 2018? a. 240,000 b. 180,000 c. 248,793 d. 186,595
Philippine Bank granted a loan to a borrower on January 1, 2017. The interest on the loan is 8% payable anually starting December 31, 2017. The loan matures in three years on December 31, 2019. Principal amount 3,000,000 Origination fee charged against the borrower 100,000 Direct origination cost incurred 260,300 After considering the origination fee charged to the borrower and the direct origination cost incurred, the effective rate on the loan is 6%. 3. What is the carrying amount of the loan receivable on December 31, 2017? a. 3,000,000 b. 3,160,300 c. 3,109,918 d. 3,210,682 4. What is the interest income for 2018? a. 240,000 b. 180,000 c. 248,793 d. 186,595
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
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Philippine Bank granted a loan to a borrower on January 1, 2017. The interest on the loan is
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8% payable anually starting December 31, 2017. The loan matures in three years on December 31, 2019.
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| Principal amount | 3,000,000 | |||
| Origination fee charged against the borrower | 100,000 | |||
| Direct origination cost incurred | 260,300 | |||
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After considering the origination fee charged to the borrower and the direct
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||||
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origination cost incurred, the effective rate on the loan is 6%.
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3. What is the carrying amount of the loan receivable on December 31, 2017?
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| a. 3,000,000 | |
| b. 3,160,300 | |
| c. 3,109,918 | |
| d. 3,210,682 | |
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4. What is the interest income for 2018?
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| a. 240,000 | |
| b. 180,000 | |
| c. 248,793 | |
| d. 186,595 |
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