Siomai ShingSiomaiSha Bank granted a loan to a borrower on January 1, 2019. The interest on the loan is 10% payable annually starting December 31, 2019. The loan matures in three years on December 31, 2021. Principal amount Origination fee charged against the borrower Direct origination cost incurred 4,000,000 342,100 150,000 After considering the origination fee charged against the borrower and the direct origination cost incurred, the effective rate on the loan is 12%. What is the carrying amount of the loan receivable on January 1, 2019? What amount should be recognized as interest income for 2019? What is the carrying amount of the loan receivable on December 31, 2019? What amount should be recognized as interest income for 2020?
Siomai ShingSiomaiSha Bank granted a loan to a borrower on January 1, 2019. The interest on the loan is 10% payable annually starting December 31, 2019. The loan matures in three years on December 31, 2021. Principal amount Origination fee charged against the borrower Direct origination cost incurred 4,000,000 342,100 150,000 After considering the origination fee charged against the borrower and the direct origination cost incurred, the effective rate on the loan is 12%. What is the carrying amount of the loan receivable on January 1, 2019? What amount should be recognized as interest income for 2019? What is the carrying amount of the loan receivable on December 31, 2019? What amount should be recognized as interest income for 2020?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 10MC: On January 1, 2019, Park Company accepted a 36,000, non-interest-bearing, 3-year note from a major...
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