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AINT NO MOUNTAIN HIGH ENOUGH has a note receivable from CLIMB EVERY MOUNTAIN (CEM). CEM is experiencing a great financial crisis and has negotiated for

AINT NO MOUNTAIN HIGH ENOUGH has a note receivable from CLIMB EVERY MOUNTAIN (CEM). CEM is experiencing a great financial crisis and has negotiated for a restructuring of its note with face amount of 800,000, and accrued interest of 88,000, based on interest rate of 11%. The note is due today. CEM asked that the principal and accrued interest be paid one-time after two years. Only 2% interest will be collected yearly moving forward. An allowance for bad debts of 20,000 relates to this note.

How much is the impairment loss?

please show your solution and explanation. PLEASE 116,865 IS INCORRECT. come up with the correct answer, thank you very much.

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