Use the following information for the next two questions:

On January 1, 20x1, TWIST Co. received a 40,000,000 note receivable from KINK, Inc. Principal payments of 8,000,000 and interest at 12% are due annually at the end of each year for 5 years. The first payment starts on December 31, 20x1.

KINK, Inc. made the required payments during 20x1 and 20x2. However, during 20x3 KINK, Inc. began to experience financial difficulties, requiring TWIST Co. to reassess the collectibility of the note. Because of the loss event, interest accruing in 20x3 was not recognized. On December 31, 20x3, TWIST Co. determined that the note has been impaired and projects future cash flows as follows:

Date of expected receipt	Amount of cash flow
January 1, 20x4	4,000,000
January 1, 20x5	8,000,000
January 1, 20x6	12,000,000

Flag this QuestionQuestion 201 pts

How much is the impairment loss on the loan receivable?