What is the total receivable related to the loan to ABC on Dec. 31, 2021?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On Jan. 1, 2021, XYZ Bank extended a 3-year 5,000,000 loan to ABC Corporation. The interest rate agreed upon is 7%. The bank incurred direct and indirect origination costs of 75,100 and 50,000 respectively, but collected origination fees of 328,230 from ABC. The effective interest rate is 9%. What is the total receivable related to the loan to ABC on Dec. 31, 2021?
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