[Superacctg]

On January 1 2014, A company loaned B company amounting to 2,000,000 and received a two year, 6% , 2,000,000 note. The note calls for annual interest to be paid each December 31. A collected the 2014 interest on schedule. However, on dec 31 2015, based on the B company's recent financial difficulties, A expected that the 2015 interest which was recorded in the books, will not be collected and that only 1,200,000 of the principal will be recovered. The 1,200,000 principal among is expected to be collected in 2 equal installments on dec 31 2017 and December 31 2019. The prevailing interest rate dir similar type of not as of December 31 2015 is 8% Based on the above information answer the following ( round off present value factors to 4 decimal places) 1.) The present value of the expected future cash flows as of December 31, 2015 2.) The loan impairment loss in 2015 3.) How much is the interest income for the year 2016? 4.) Carrying amount of loan as of December 31 2017 Can you please show the solutions since I really don't understand this problem. Thank you so much :)

[smoothy]

SO you want us to do your homework for you (against the site rules)... if you are handed the answers you still won't understand how to do it.


Tell us what you have so far... then someone can explain what you are doing wrong.