Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On December 1, 2020, Thamuz Co. gave Harith Co. a P400,000, 11% loan. Thamuz paid proceeds of P388,000 after the deduction of a P12,000 nonrefundable
On December 1, 2020, Thamuz Co. gave Harith Co. a P400,000, 11% loan. Thamuz paid proceeds of P388,000 after the deduction of a P12,000 nonrefundable loan origination fee. Principal and interest are due in 60 monthly installments of P8,620, beginning January 1, 2021. The repayments yield an effective interest rate of 11% at a present value of P400,000 and 12.4% at a present value of P388,000. What amount of income from this loan should Thamuz report in its 2020 income statement? (Round-off computations to the nearest peso)On January 1, 2020, Atlas Bank entered a 12%, P2,000,000 loan to Angela, Inc. Principal is due on January 1, 2024 but interests are due annually every January 1. Atlas incurred direct origination costs of P176,788 and indirect origination costs of P36,000. In addition, Atlas charged Angela a 2.5% nonrefundable origination fee. The effective rate is 13.84%. How much is the interest income in 2021? (Round-off computations and final answer to the nearest peso)On November 1, 2020, Gusion Co. discounted with recourse at 10% a one-year, noninterest bearing, P41,000 note receivable maturing on January 1, 2021. What amount of contingent liability for this note must Gusion disclose in its 2020 financial statements
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started