What amount is loan receivable presented in the statement

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Problem 1: CPA Bank Co. loaned P4,000,000 to a borrower on January 1, 2018. The terms of the loan require principal payments of P800,000 each year for 5 years plus interest at 8%.The first principal and interest payment is due on January 1, 2019. The borrower made the required payments during 2019 and 2020. However, during 2020 the borrower began to experience financial difficulties, requiring the bank to reassess the collectability of the loan. On December 31, 2020, the bank has determined that the remaining principal payment will be collected as originally scheduled but the collection of the interest is unlikely. The bank did not accrue the interest on December 31, 2020. The present value of 1 at 8% is 0.93 for one period, 0.86 for two periods and 0.79 for three periods. At what amount is loan receivable presented in the statement of financial position on December 31, 2021?

Reference no: EM132842568

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