Question
10. AA Bank granted a loan application of Client BB on January 1, 20A for P1,000,000. The agreement requires the client to pay the full
10. AA Bank granted a loan application of Client BB on January 1, 20A for P1,000,000. The agreement requires the client to pay the full amount on December 31, 20D and the 12% interest, annually starting 20A. Of the P99,911, P35,083 is shouldered by AA and the rest was charged against its client. In effect, the new effective interest rate is increased by 1%. If BB will default from paying its annual interest due, AA will consider testing the financial asset for possible impairment. On December 31, 20A, how much should AAs income from this loan?
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The Audit Process Principles Practice And Cases
Authors: Stuart Manson, Iain Gray, Louise Crawford
6th Edition
1408081709, 978-1408081709
