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please provide the steps to the solutions. thank you! On December 31.2020, American Bank enters into a debt restructuring agreement with Buffalo Company, which is
please provide the steps to the solutions. thank you!
On December 31.2020, American Bank enters into a debt restructuring agreement with Buffalo Company, which is now experiencing financial trouble. The bank agrees to restructure a 12%, issued at par, $2,540,000 note receivable by the following modifications: 1. Reducing the principal obligation from $2.540,000 to $2.032,000, 2. Extending the maturity date from December 31.2020 , to January 1.2024 , 3. Reducing the interest rate from 12% to 10%. Buffalo pass interest at the end of each year. On January 1.2024, Buffalo Compary poys $2.032,000 in cash to American Bank. Prepare the interest receipt schedule for Swifty Bank after the debt restructuring. (Round answers to 0 decimal ploces, e.8. 38,548.) Step by Step Solution
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