Reference no: EM132841844

Questions -

Question 1 - Metrobank made a $2,000,000, 8% loan on January 1, 2018. The $160,000 interest is receivable at the end of each year, with the principal amount to be received at the end of five years. By the end of 2018, the first year's interest of $160,000 has not been received yet because the borrower is experiencing financial troubles. The borrower negotiated a restructuring of the loan. The payment of all of the interest for 5 years will be delayed until the end of the 5 year loan term. In addition, the amount of principal repayment will be dropped from $2,000,000 to $1,200,000. The Present Value of 1 at 8% for 4 periods is .735. No interest revenue has been recognized in 2018 in connection with the loan. What is the loan impairment loss for 2018?

Question 2 - Aaron Company makes use of the perpetual inventory method to account for its silver purchases. They use average costing to keep a close eye on its purchase costs. Based on the information below, what amount should the ending cost of the silver inventory be?

Date	Particulars	Grams	Cost per Gram
June 1	Beginning balance	1,200	40.50
June 5	Purchase	2,400	40.80
June 10	Purchase	2,700	41.20
June 16	Sale	6,000
June 24	Purchase	2,000	41.00

Question 3 - Imar Corporation sells sacks of cement. The inventory data presents the following information:

Date	Particulars	Number of Sacks	Unit Cost	Total Cost
May 1	Beginning balance	600	$200	$120,000
May 5	Purchase	900	210	189,000
May 7	Sales	1,300
May 14	Purchase	1,400	190	266,000
May 15	Sales	1,200
May 24	Purchase	1,000	200	200,000
May 28	Sales	1,200

At what amount should Imar Corporation report as Cost of Goods Sold if the business uses the FIFO method to cost inventories?

Question 4 - Romina Inc. purchased 160,000 shares of Magui Company for $60 each. One month after the purchase, Magui Company declared a 2-for-1 stock split down. Romina Inc. subsequently sold 20,000 shares. During the last month of the reporting period, Magui Company declared $0.80 dividend per share. What amount should Romina Inc. report as dividend income?

Question 5 - In 2020, which is the first year of operation, Priscilla Inc. made various investments in trading securities. The investments had the following cost and market value on December 31, 2020:

	Cost	Market Value (December 31, 2020)
ABC	$1,300,000	$1,250,000
DEF	800,000	900,000
GHI	1,000,000	700,000

For the year 2020, what amount should be included as unrealized loss on the income statement?