Reference no: EM133104919
Question - On January 1, 2019, Zion Bank provided a loan of P4,000,000 to a XYZ Co. Under the loan agreement, the effective interest rate is 10% and that XYZ Co. is to pay the annual interest every December 31. The principal amount of the loan is due on December 31, 2023. On December31, 2019, the bank needs to measure the 12-month expected credit loss for the loan. The bank determined that the probability of the loan-being in default over the next 12 months is 1% and that 20% of the gross carrying amount will be lost over the term of the loan (Loss Given Default is 20%).
On December 31, 2020, the bank has determined that there is a significant increase in the credit risk of the loan receivable. The probability of the loan being in default over the life of the loan is 10% and that 25% of the gross carrying amount will be lost over the remaining term of the loan.
During 2021, XYZ Company began to face financial difficulties. At year-end, the bank considered the loan to be impaired. Interest for that year was collected. However, only 40% of the principal amount is expected to be received on due date.
Required - What the amount of impairment loss to be recognized on December 31, 2020?
a. 93,270
b. 100,000
c. 75,130
d. 156,470
|
Describe the purchase-to-pay business process
: Describe the purchase-to-pay business process and Create a purchase requisition for stock and consumable materials
|
|
Explain master data associated with the fulfillment process
: Discuss the role of the credit management process in fulfillment and Effectively use SAP ERP to execute the key steps in the fulfillment process
|
|
What is the margin of safety
: Considering that the company has a unit break-even point of 333.33 units, what is the margin of safety in terms of both units and sales revenue
|
|
At what amount should the inventory at year-end be reduced
: Goods out on consignment at sales price, including 40% markup on cost P1,400,000. At what amount should the inventory at year-end be reduced
|
|
What amount of impairment loss to be recognized on December
: On January 1, 2019, Zion Bank provided a loan of P4,000,000 to a XYZ Co. What amount of impairment loss to be recognized on December
|
|
Get familiar with global bikes it strategy
: Get familiar with Global Bikes IT strategy - Narrative about Global Bike's information technology strategy
|
|
Compute the consolidated cost of goods sold
: During 2019, Pak purchased inventory items from Sak at a selling price of P800,000. Compute the consolidated cost of goods sold
|
|
What is your annual total that you would invest
: Assume you have allocated your weekly pay as follows: Save 10%; Spend 70%; Invest 10% and Give 10%. What is your annual total that you would invest
|
|
Explain the role of enterprise systems
: Explain the role of enterprise systems in supporting business processes and Differentiate the different categories of data within SAP ERP
|