Intermediate Accounting
1st Edition
ISBN: 9780132162302
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Chapter 16, Problem 16.13P
a.
To determine
The amount of loss G would have to report in net income if there is an impairment and the amount of loss G would report in other comprehensive income.
b.
To determine
To prepare: The
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Details for one of the loan of BB Company that is probably impaired during the period is as follows:
The company made a loan of P40,000,000 to a customer with similar credit risk to BB Company on January 1, 2021.
Interest is receivable on this loan at the end of each year at 2% per annum for the next five years.
The loan was properly recorded and classified as amortized cost.
The company made and initial assessment of the loan and the total expected credit losses over the life of the loan was P1,000,000. The discount rate applicable was at 2%.
On January 1, 2021, the probability of default over the next 12 months was 5%.
At December 31, 2021, there was a significant increase in the credit risk on the loan made by BB Company, the expert assessed that the total expected credit losses over the life of the loan was increase to P2,200,000. The discount rate applicable was at 2%.
How much is the balance of the allowance for credit losses as of December 31, 2021?
Details for one of the loan of BB Company that is probably impaired during the period is as follows:
- The company made a loan of P40,000,000 to a customer with similar credit risk to BB Company on January 1, 2021.
- Interest is receivable on this loan at the end of each year at 2% per annum for the next five years.
• The loan was properly recorded and classified as amortized cost.
The company made and initial assessment of the loan and the total expected credit losses over the life of the loan was P1,000,000. The discount rate applicable was at 2%.
. On January 1, 2021, the probability of default over the next 12 months was 5%.
At December 31, 2021, there was a significant increase in the credit risk on the loan made by BB Company, the expert assessed that the total expected credit losses over the life of the loan was increase to P2,200,000. The discount rate applicable was at 2%.
Pv Factor 6 decimal places
How much is the total impairment loss recognized by BB Company in its…
On January 1, Windsors Inc. sold used equipment with a cost of $15,000 and a carrying amount of $2,100 to Novak Corp. in exchange
for a $5,000, three-year non-interest-bearing note receivable. Although no interest was specified, the market rate for a loan of that
risk would be 9%. Assume that Windsors follows IFRS.
Click here to view the factor table PRESENT VALUE OF 1.
Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1.
Your answer is incorrect.
Prepare the entry to record the sale of Windsors' equipment and receipt of the note. (Round answers to O decimal places, e.g. 5,275.
Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No
Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. For calculation purposes, use 5 decimal
places as displayed in the factor table provided.)
Account Titles and Explanation
Debit
Credit
Chapter 16 Solutions
Intermediate Accounting
Ch. 16 - Prob. 16.1QCh. 16 - Is reporting an investment at its cost considered...Ch. 16 - Prob. 16.3QCh. 16 - Prob. 16.4QCh. 16 - Prob. 16.5QCh. 16 - Prob. 16.6QCh. 16 - What categories can managers use to classify...Ch. 16 - When is the equity method of accounting for...Ch. 16 - Prob. 16.9QCh. 16 - Can companies apply the fair value option to all...
Ch. 16 - What is the fair value hierarchy for investment...Ch. 16 - Prob. 16.12QCh. 16 - Prob. 16.13QCh. 16 - Prob. 16.14QCh. 16 - Prob. 16.15QCh. 16 - Prob. 16.16QCh. 16 - Prob. 16.17QCh. 16 - Deutsch Imports has three securities in its...Ch. 16 - Prob. 16.2MCCh. 16 - Prob. 16.3MCCh. 16 - Prob. 16.4MCCh. 16 - Prob. 16.5MCCh. 16 - Prob. 16.6MCCh. 16 - Prob. 16.7MCCh. 16 - Prob. 16.1BECh. 16 - Prob. 16.2BECh. 16 - Debt Investments, Trading. Using the information...Ch. 16 - Prob. 16.4BECh. 16 - Prob. 16.5BECh. 16 - Prob. 16.6BECh. 16 - Prob. 16.7BECh. 16 - Prob. 16.8BECh. 16 - Notes Receivable. Aaron Anatole accepted a...Ch. 16 - Prob. 16.10BECh. 16 - Prob. 16.11BECh. 16 - Prob. 16.12BECh. 16 - Debt Investments. Impairments. IFRS. For each debt...Ch. 16 - Prob. 16.14BECh. 16 - Prob. 16.15BECh. 16 - Prob. 16.1ECh. 16 - Prob. 16.2ECh. 16 - Prob. 16.3ECh. 16 - Prob. 16.4ECh. 16 - Prob. 16.5ECh. 16 - Prob. 16.6ECh. 16 - Debt and Equity Investments, Available-for-Sale...Ch. 16 - Prob. 16.8ECh. 16 - Prob. 16.9ECh. 16 - Prob. 16.11ECh. 16 - Equity-Investments, Equity Method. Book Value of...Ch. 16 - Prob. 16.13ECh. 16 - Prob. 16.14ECh. 16 - Notes Receivable. Each of the following three...Ch. 16 - Prob. 16.16ECh. 16 - Prob. 16.17ECh. 16 - Prob. 16.18ECh. 16 - Prob. 16.19ECh. 16 - Prob. 16.20ECh. 16 - Prob. 16.21ECh. 16 - Prob. 16.22ECh. 16 - Prob. 16.23ECh. 16 - Prob. 16.1PCh. 16 - Debt Investments, Trading. Freder Software Group...Ch. 16 - Prob. 16.3PCh. 16 - Equity Investments, Readily Determinable Fair...Ch. 16 - Prob. 16.5PCh. 16 - Prob. 16.6PCh. 16 - Prob. 16.7PCh. 16 - Prob. 16.8PCh. 16 - Prob. 16.9PCh. 16 - Equity Investments, Equity Method, Fair Value...Ch. 16 - Prob. 16.11PCh. 16 - Prob. 16.12PCh. 16 - Prob. 16.13PCh. 16 - Prob. 16.14PCh. 16 - Prob. 16.15PCh. 16 - Prob. 16.16PCh. 16 - Prob. 16.17PCh. 16 - Prob. 1JCCh. 16 - Prob. 2JCCh. 16 - Prob. 1FSACCh. 16 - Prob. 1SSCCh. 16 - Prob. 1BCCCh. 16 - Prob. 2BCC
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