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What is the carrying amount of the loan as of jan

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Question - A bank granted a loan to a borrower on Jan. 1, 2021, with interest 10% payable annually starting Dec. 31, 2021. The loan matures in three years on Dec. 31, 2023. The following data are related to the loan:

Principal amount P4,000,000

Origination fees charged against the borrower P342,100

Direct origination cost P150,020

Note: Round off PV factors to four decimal places.

Required -

1. What is the carrying amount of the loan as of Jan. 1, 2021?

2. The effective interest rate of the loan is?

3. The interest income to be recognized in 2021 is?

4. The carrying amount of the loan in Dec. 31. 2021 is?

5. The current portion of the loan as of Dec. 31, 2021 is?

Reference no: EM133151409

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