in 07 HW Exercise 2.9 Exercise 7-18 Exercise 7-27 On December 31, 2014, Conchita
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in 07 HW Exercise 2.9 Exercise 7-18 Exercise 7-27 On December 31, 2014, Conchita Martinez signed 1,100,000 note to Sauk City Bank. The market interest rate at company a $ that time was 11. The stated interest rate on the note was 9%, payable annually. The note matures in 5 years. Unfortunately, because of lower sales, Conchita Martinez's financial situation worsened. On December 31, 2016, Sauk City Bank determined that it was probable that the company would pay back only $660,000 of the principal at maturity. However, It would was considered likely that interest continue to be paid, based on the $1,100,000 loan. Exercise -24 erase Determine the amount of cash Conchita Martinez received from the loan on December 31, 2014. (Round present value factors to 5 decimal places, eg, 0.52500 and final answer to a decimal places, eg5, 275.) view Score Amount of cash Conchita Martinez received from the loan view Results by study ect LINK TO TEXT Prepare a note amortization schedule for Sauk City Bank up to December 31, 2016. (Round answers to a decimal places, e-g. 5, 275.) Cash Received Note Amortization Schedule (Before Impairment) Increase in Interest Carrying Carrying Amount of Date Revenue 12/31/14 12/31/15 12/31/16 LINK TO TEXT Determine the loss on impairment that Sauk City Bank should recognize on December 31, 2016. (Round present value factors to 5 decimal placesand answer to places, , ,275.) , eg, 0.52500 final a decimal eg5 Loss due to impairment eit in a would like to show work atExplanation / Answer
Amount of Cash Conchita Martinez Received from Loan Cash received by Conchita Martinez Company on December 31,2014 Present Value of Principal($1100000*.59345) $ 652,795.00 Present Value of Interest($1,100,000*9%*3.6959) $ 365,894.10 Cash Received $ 1,018,689.10 Note Amortization Schedule before Impairment Date Cash Received (9%) Interest Received(11%) Increase in carrying amount Carrying amount of note 31/12/2014 $ 1,018,689.10 31/12/2015 99000 $ 112,055.80 $ 13,055.80 $ 1,031,744.90 31/12/2016 99000 $ 113,491.94 $ 14,491.94 $ 1,046,236.84 Loss on Impairment Carrying amount of loan 31/12/2016 $ 1,046,236.84 Less:present value of $6,60,000 due in 3 years $ 482,585.40 Present value of $99,000 payable annually in 3 years $ 241,926.30 Loss due to impairment $ 321,725.14
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