Amount of Cash Monty received from the loan 1100777

Cash received Interest revenue Increase in Carrying amount Carrying amount of note 12/31/20 1100777 12/31/21 118630 132093 13463 1114240 12/31/22 118630 133709 15079 1129319

On December 31, 2020, Monty Company signed a $1,186,300 note to Flounder Bank. The market interest rate at that time was 12%. The stated interest rate on the note was 10%, payable annually. The note matures in 5 years. Unfortunately, because of lower sales, Monty's financial situation worsened. On December 31, 2022, Flounder Bank determined that it was probable that the company would pay back only $711,780 of the principal at maturity. However, it was considered likely that interest would continue to be paid, based on the $1,186,300 loan. Determine the loss on impairment that Flounder Bank should recognize on December 31, 2022. (Round present value factors to 5 decimal places, e.g. 0.52500 and final answer to 0 decimal places, e.g. 5,275.) Loss due to impairment $