Question
on December 31,2019, Macedon Bank has a 5- year loan receivable with a face amount of 5,000,000 dates January 1, 2018 that is due on
on December 31,2019, Macedon Bank has a 5- year loan receivable with a face amount of 5,000,000 dates January 1, 2018 that is due on December 31,2022. Interes on the loan is payable at 9% every December 31. The borrower paid the interest that was due on December 31,2018, but. informed the bank that interest accrued in 2019 will be paid at maturity date. there is a high probability that the remaining interest payments will not be paid because of financial difficulty. the prevailing market rate of interest on December 31, 2019 is 10%. The PV of 1 for three periods is .77 at 9% and .75 at 10%.
What is the loan impairment loss for 2019?
What is the carrying amount of the loan on December 31,2020?
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