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On December 31, 2025, Splish Company signed a $1,056,900 note to Blossom Bank. The market interest rate at that time was 10%. The stated interest
On December 31, 2025, Splish Company signed a $1,056,900 note to Blossom Bank. The market interest rate at that time was 10%. The stated interest rate on the note was 8%, payable annually. The note matures in 5 years. Unfortunately, because of lower sales, Splish's financial situation worsened. On December 31, 2027, Blossom Bank determined that it was probable that the company would pay back only $634,140 of the principal at maturity. However, it was considered likely that interest would continue to be paid, based on the $1,056,900 loan. (a) Your answer is correct. Determine the amount of cash Splish received from the loan on December 31, 2025. (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 Splish received from the loan $ Your answer is correct. Prepare a note amortization schedule for Blossom Bank up to December 31, 2027. (Round answers to 0 decimal places, e.g. 5,275.) (c) Determine the loss on impairment that Blossom Bank should recognize on December 31, 2027. (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 $
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