How much are the carrying amounts of the loan in the books

Assignment Help Financial Accounting
Reference no: EM132834324

Problem 1: Duff, Inc. borrowed from Martin Bank under a 10-year loan in the amount of P150,000 with a stated interest rate of 6%. Payments are due monthly and are computed to be P1,665. Martin Bank incurs P4,000 of direct loan origination costs and P2,000 of indirect loan origination costs. In addition, Martin Bank charges Duff, Inc. a four-point nonrefundable loan origination fee. On initial recognition, how much are the carrying amounts of the loan in the books of Martin Bank, the lender, and Duff, Inc., the borrower, respectively.

a.) 144,000;148,000

b.) 150,000;148,000

c.) 148,000;152,000

d.) 148,000;144,000

Reference no: EM132834324

Questions Cloud

What is the firm marginal cost of capital : Currently, the firm's capital structure has $400 million of debt, $100 million of preferred stock, What is the firm's marginal cost of capital
What was the clinic growth rate in assets : What was the clinic's growth rate (%) in assets in 2018? Mandara Clinic had total assets of $1,500,000 and an equity balance of $1,350,000
How should teachers react in given situation : When teachers encounter parents or caregivers who display a sense of entitlement (perhaps on behalf of their students), how should teachers react?
What types of expenditures should be included in determining : Explain what types of expenditures should be included in determining the cost of property, plant, and equipment. Paid $1.2 million for a plant site.
How much are the carrying amounts of the loan in the books : On initial recognition, how much are the carrying amounts of the loan in the books of Martin Bank, the lender, and Duff, Inc., the borrower, respectively.
Find aroma investment in baltic will increase net income : During the year, Baltic pays $10,000 in dividends to Aroma and reports $100,000 net income. Aroma's investment in Baltic will increase Aroma's net income by
Discussion about community-based instructional experience : Compose a 500-750-word summary that discusses where the community-based instructional experience will take place, an agenda and itinerary for the experience.
How many futures contracts are necessary to this hedge : On January 15, an American farmer knows that he will have to sell 75,000 bushels of corn in June 15. How many futures contracts are necessary to this hedge
What was the annual percentage increase : The value of a house is estimated to be $89,000 today. If it has increased in value by 8 percent per year, what was the annual percentage increase?

Reviews

Write a Review

Financial Accounting Questions & Answers

  What are the factors to be considered in pricing new product

A company just come up with a new product and will be brought to the market soon, What are the factors to be considered in pricing your new product?

  Prepare a statement of cost of goods manufactured

During June, Argon, Inc., purchases of direct materials totaled $119,000; direct labor for the month was 3,400 hours at $10.00 per hour. Agron also incurred the following overhead costs: Prepare a statement of cost of goods manufactured.

  Appropriation allows using funds for accounting services

Are the following allowable expenses(please list Yes or No cleary - such as, 6), "Yes, this is allowable, because___)? Why or why not? An agency decides to award a vendor $1,000,000 to perform accounting services on a one-year appropriation. The appr..

  Create schedule calculating the balance in blue spruce

Net sales for 2020 were $79 million,Make a schedule calculating the balance in Blue Spruce Corp.'s Allowance for Doubtful Accounts at December 31, 2020

  Determine the firm loan installment amount

Determine the firm' loan Installment amount. BBA just closed a Rs.95,000 business loan that is to be repaid in 10 equal Sami-annually payments.

  What amount will markwell record the purchase of equipment

For What amount will Markwell record the purchase of equipment? On July 1, 2021, Markwell Company acquired equipment. Markwell paid $160,000 in cash on July 1

  What types of estimates did m and s discuss in 2010

Were there changes in accounting policies reported by M&S during the two years covered by its income statements (2009-2010)? If so, describe the nature of the change and the year of change.

  Journalizing the transaction of stock issue for cash and

journalizing the transaction of stock issue for cash and asset.tyler corporation has 100000 shares of 40 par value

  Calculate the amount of the monthly mortgage payment

Calculate The amount of the monthly mortgage payment that will be used to reduce the principal balance. The amount of interest included in the March

  Purchased a large amount of inventory

Nichole Jordan comes to you for advice. She has just purchased a large amount of inventory with the terms 1/30, n/90. The amount of the invoice is $323,000.

  What is the risk of portfolio kj

What is the risk of portfolio KJ? There are two assets K and J. The expected return of asset K is 8% and the expected return of asset J is 10%

  Explain internal controls and purpose within an organization

Define and Explain Internal Controls and Their Purpose within an Organization. Make sure to use a company/industry to define the given example.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd