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year-end 2011 would be $ 12/31/11 would be $ and the book value of the restructured debt on

year-end 2011 would be $ 12/31/11 would be $ and the book value of the restructured debt on

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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NAME 4. Chapin Co. restructures a note payable of $1,100,000 plus accrued interest of $78,073 with its bank on December 31, 2010. The bank (1) forgives the accrued interest and $100,000 of the principal, (2) extends the maturity date from December 31, 2010 to December 31, 2015, and (3) reduces the interest rate from 10% to 8%. Interest payments are to be made annually at year end. Chapin Co.'s interest expense for fiscal year-end 2011 would be $ 12/31/11 would be $ and the book value of the restructured debt on
Transcribed Image Text:NAME 4. Chapin Co. restructures a note payable of $1,100,000 plus accrued interest of $78,073 with its bank on December 31, 2010. The bank (1) forgives the accrued interest and $100,000 of the principal, (2) extends the maturity date from December 31, 2010 to December 31, 2015, and (3) reduces the interest rate from 10% to 8%. Interest payments are to be made annually at year end. Chapin Co.'s interest expense for fiscal year-end 2011 would be $ 12/31/11 would be $ and the book value of the restructured debt on
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