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Brittle plc has agreed to lend a customer 10,000 on 1 January 20X2 subject to the following terms: The loan is repaid on 31 December

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Brittle plc has agreed to lend a customer 10,000 on 1 January 20X2 subject to the following terms: The loan is repaid on 31 December 20X4 in full. Interest payment of 1,000 to be paid in cash on 31 December each year (for a total of three payments). Brittle plc incurred 200 of transaction costs in relation to the loan. The effective rate of interest on the loan is 9.207%. Compute the following items (rounded to 1 decimal), showing all workings: a) Amortised cost of the loan at 1 January 20X2. b) Interest income for the year ending 31 December 20X2. c) Amortised cost of the loan at 31 December 20X2. d) Interest income for the year ending 31 December 20X3. e) Amortised cost of the loan at 31 December 20x3

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