On December 31, 2020, Ayayai Company signed a $1,061,900 note to Pina Bank. The market interest rate at that time was 11%. The stated interest rate on the note was 9%, payable annually. The note matures in 5 years. Unfortunately, because of lower sales, Ayayais financial situation worsened. On December 31, 2022, Pina Bank determined that it was probable that the company would pay back only $637,140 of the principal at maturity. However, it was considered likely that interest would continue to be paid, based on the $1,061,900 loan.

A.

Determine the amount of cash Ayayai received from the loan on December 31, 2020. (Round present value factors to 5 decimal places, e.g. 0.52513 and final answer to 0 decimal places, e.g. 5,275.)

Amount of cash Ayayai received from the loan

$enter a dollar amount of cash Ayayai received from the loan

B. Prepare a note amortization schedule for Pina Bank up to December 31, 2022. (Round answers to 0 decimal places, e.g. 5,275.)

C. Determine the loss on impairment that Pina 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

$enter the Loss due to impairment in dollars

Note Amortization Schedule (Before Impairment) Increase in Carrying Cash Interest Carrying Amount of Date Received Revenue Amount Note $ 12/31/20 $ $ 12/31/21 12/31/22