ONLY BELOW NEEDS TO BE SOLVED PLEASE
Metlock Corp. owes Ivanhoe Corp. a $99,990, 10-year, 10% note issued at par plus $9,999 of accrued interest. The note is due today, December 31, 2020. Because Metlock Corp. is in financial trouble, Ivanhoe Corp. agrees to forgive the accrued interest and $10,420 of the principal, and to extend the maturity date to December 31, 2023. Interest at 10% of the revised principal will continue to be due on December 31 of each year. Assume the market rate of interest is 10% at the date of refinancing. Metlock and Ivanhoe prepare financial statements in accordance with IFRS. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. (a) Your answer is correct. Using (1) factor tables, (2) a financial calculator, or (3) Excel function PV, determine if this is a settlement or a modification. (Hint: Refer to Chapter 3 for tips on calculating.) 1 Settlement o Prepare a schedule of the debt reduction and interest expense for the years 2020 through 2023. (Do not leave any answer field blank. Enter o for amounts.) Metlock Corp. SCHEDULE OF DEBT REDUCTION AND INTEREST EXPENSE AMORTIZATION Effective Interest Change in Carrying (Market) Amount Date Cash Interest Carrying Amount 12/31/20 89570 12/31/21 8957 8957 89570 12/31/22 8957 8957 HTV 189570 PTE- PPPT 12/31/23 8957 8957 PPT 89570 12/31/23 89570 89570 x Your answer is incorrect. Try again. Calculate the gain or loss for Ivanhoe Corp. and prepare a schedule of the receivable reduction and interest income for the years 2020 through 2023. (Round answers to 0 decimal places, e.g. 5,275. Do not leave any answer field blank. Enter 0 for amounts.) Loss on restructure $ Ivanhoe Corp. Effective Interest (Market) Change in Carrying Amount Carrying Amount of Note Date Cash Interest 12/31/20 12/31/21 12/31/22 12/31/23 12/31/23 Metlock Corp. owes Ivanhoe Corp. a $99,990, 10-year, 10% note issued at par plus $9,999 of accrued interest. The note is due today, December 31, 2020. Because Metlock Corp. is in financial trouble, Ivanhoe Corp. agrees to forgive the accrued interest and $10,420 of the principal, and to extend the maturity date to December 31, 2023. Interest at 10% of the revised principal will continue to be due on December 31 of each year. Assume the market rate of interest is 10% at the date of refinancing. Metlock and Ivanhoe prepare financial statements in accordance with IFRS. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. (a) Your answer is correct. Using (1) factor tables, (2) a financial calculator, or (3) Excel function PV, determine if this is a settlement or a modification. (Hint: Refer to Chapter 3 for tips on calculating.) 1 Settlement o Prepare a schedule of the debt reduction and interest expense for the years 2020 through 2023. (Do not leave any answer field blank. Enter o for amounts.) Metlock Corp. SCHEDULE OF DEBT REDUCTION AND INTEREST EXPENSE AMORTIZATION Effective Interest Change in Carrying (Market) Amount Date Cash Interest Carrying Amount 12/31/20 89570 12/31/21 8957 8957 89570 12/31/22 8957 8957 HTV 189570 PTE- PPPT 12/31/23 8957 8957 PPT 89570 12/31/23 89570 89570 x Your answer is incorrect. Try again. Calculate the gain or loss for Ivanhoe Corp. and prepare a schedule of the receivable reduction and interest income for the years 2020 through 2023. (Round answers to 0 decimal places, e.g. 5,275. Do not leave any answer field blank. Enter 0 for amounts.) Loss on restructure $ Ivanhoe Corp. Effective Interest (Market) Change in Carrying Amount Carrying Amount of Note Date Cash Interest 12/31/20 12/31/21 12/31/22 12/31/23 12/31/23
