What is the loan impairment loss on December 31, 2021? Kalino Bank loaned P5,000,000 to Caticlan Company on January 1, 2019. The terms of the loan require principal payments of P1,000,000 each year for 5 years plus interest at 8%. The first principal and interest payment is due on January 1, 2020. Caticlan Company made the required payments during 2020 and 2021. However, during 2021 Caticlan Company began to experience financial difficulties, requiring Kalibo Bank to reassess the collectability of the loan. On December 31, 2021, Kalibo Bank determined that the remaining principal payment will be collected but the collection of the interest is unlikely. Kalibo Bank did not accrue the interest on December 31, 2021. The present value of 1 at 8% is as follows: For one period For two periods For three periods 0.926 0.857 0.794 O a. 423,000 O b. 217,000 O c. 222,000 O d. 0

What is the loan impairment loss on December 31, 2021? Kalino Bank loaned P5,000,000 to Caticlan Company on January 1, 2019. The terms of the loan require principal payments of P1,000,000 each year for 5 years plus interest at 8%. The first principal and interest payment is due on January 1, 2020. Caticlan Company made the required payments during 2020 and 2021. However, during 2021 Caticlan Company began to experience financial difficulties, requiring Kalibo Bank to reassess the collectability of the loan. On December 31, 2021, Kalibo Bank determined that the remaining principal payment will be collected but the collection of the interest is unlikely. Kalibo Bank did not accrue the interest on December 31, 2021. The present value of 1 at 8% is as follows: For one period For two periods For three periods 0.926 0.857 0.794 O a. 423,000 O b. 217,000 O c. 222,000 O d. 0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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