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On December 31, 2020Nash Company signed a $1.284,300 note to Crane Bank. The market interest rate at that time was 12%. The stated interest rate
On December 31, 2020Nash Company signed a $1.284,300 note to Crane 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, Nash's financial situation worsened. On December 31, 2022, Crane Bank determined that it was probable that the company would pay back only $770,580 of the principal at maturity. However, it was considered likely that interest would continue to be paid based on the $1.284,300 loan. (a) Your answer is correct. Determine the amount of cash Nash received from the loan on December 31, 2020. (Round present value factors to 5 decimal ploces, eg. 0.52513 and final answer to 0 decimal places, es 5,275.) Amount of cash Nash received from the loan $ 1191712 (b) Prepare a note amortization schedule for Crane Bank up to December 31, 2022. (Round answers to 0 decimal places, eg. 5,275.) Note Amortization Schedule (Before Impairment) Increase in Carrying Amount Carr Amoi Nc Cash Received Interest Revenue Date $ 12/31/20 12/31/21 $ $ $ 12/31/22
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