What is the loan impairment loss

Assignment Help Accounting Basics

Reference no: EM132837317

Questions -

Q1. In March of the year 2020, Jopay Company bought nontrading equity investments which are irrevocably designated at FV-OCl. The balance in the unrealized gain/(loss) on these securities was $200,000 on December 31, 2020. During 2020, stock CC was sold for $1,100,000. Pertinent information on December 31, 2020 are the following:

	Cost	Market Value
AA	$2,100,000	$1,600,000
BB	1,850,000	2,000,000
CC	1,050,000	900,000

How much should Jopay Company report as unrealized holding loss in its statement of changes in stockholder' s equity for the year 2021?

Q2. 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?

Reference no: EM132837317

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