Reference no: EM132995898
Problem - On January 1, 2020, Atlas Bank entered a 12%, P2,000,000 loan to Angela, Inc. Principal is due on January 1, 2024 but interests are due annually every January 1. Atlas incurred direct origination costs of P176,788 and indirect origination costs of P36,000. In addition, Atlas charged Angela a 2.5% nonrefundable origination fee. The effective rate is 13.84%. How much is the interest income in 2021? (Round-off computations and final answer to the nearest peso)
On January 1, 2021, Bane Bank extended a P1,800,00 loan to Faramis, Inc. Principal is due on December 31, 2025 but 12% interest is due annually starting December 31, 2021.
On December 31, 2023, Faramis, Inc. was delinquent and it was ascertained that the loan is impaired. Bane Bank assessed that interests accruing on the loan will not be collected; however, the principal is expected to be received in three equal annual installments starting on December 31, 2024. The current market rate on December 31, 2023 is 14%. (Round-off PV factors to 3 decimal places)
How much is the balance of allowance for impairment loss on December 31, 2023 immediately after impairment testing?
How much is the interest income in 2024?
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: Atlas charged Angela a 2.5% nonrefundable origination fee. The effective rate is 13.84%. How much is the interest income in 2021
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