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Please show work On December 31, 2017, Ivan Company borrowed from Indianapolis Bank by signing a 6-year, $1,500,000 zero interest bearing note. The market rate
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On December 31, 2017, Ivan Company borrowed from Indianapolis Bank by signing a 6-year, $1,500,000 zero interest bearing note. The market rate of interest at the time the note was 12%. Two years later in 2019, Indianapolis Bank reviewed the note and found that it was impaired. The final conclusion on loan impairment was reached on December 31, 2019. The Bank is hoping that Ivan will pay back $1,000,000 at maturity. The market rate of interest on loans of this nature has increased to 13% at December 31, 2019. 1. Record the journal entry for the bank on December 31, 2017 when they issued the note to Ivan. 2. Prepare the amortization schedule, through December 31, 2019. for the note assuming the effective interest amortization method is used by Indianapolis Bank 3. What amount will Indianapolis Bank record on December 31, 2019 as the loss on impairment? For full credit show the calculation of the impairment loss Step by Step Solution
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