Problem 9-19 (IFRS)P600,000. As a result of a restructuring agreement on1, 2021, the creditor agreed to the following concessionsJanuarya. Accrued interest of P600,000 is forgiven..b. The new principal is P4,000,000.c. The new interest rate is 6% payable every December a.e. The entity paid P350,000 as an arrangement fee tocreditor.The PV of 1 at 10% for 3 periods is 0.75 and the PV ofordinary annuity of 1 at 10% for 3 periods is 2.49.The market rate of interest for similar note is 14%. The Dyof 1 at 14% for 3 periods is 0.67 and the PV of an ordinaryannuity of 1 at 14% for 3 periods is 2.32.1. At what amount should the new note payable be initiallymeasured?a. 3,597,600b. 3,947,600c. 3,236,800d. 4,000,0002. What amount of gain on extinguishment should berecognized for 2021?а. 3,363,200b. 3,013,200c. 2,652,400d. 3,002,4003. What amount should be reported as interest expense forthe 2021?a. 453,152b. 394,760с. 359,760d. 240,0004. What is the carrying amount of the new note payable onDecember 31, 2021?a. 3,449,952b. 4,000,000с. 3,786,848d. 3,689,952316

FV = present value of future cash flows @ market rate

Answered: Problem 9-19 (IFRS) January P600,000.…

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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