National bank would recognize for the lyon note

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National Bank loaned the Lyon Company $10 million, at an interest rate of 8%. The note was signed January 1, 2008, and was due December 31, 2022. Annual interest was last paid on December 31, 2016. At January 1, 2018, National Bank concluded it was probable that the note was impaired. National believes it will not collect accrued interest, that it will only receive $500,000 of interest each year, and that it will only receive $8 million of principal at the end of the life of the note. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: Calculate the amount of impairment that National Bank would recognize for the Lyon note. (Enter your answer in whole dollars. Round your final answer to nearest whole dollar.)

Reference no: EM131886537

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