Quiz_2_solutions - 1 a CV of note N/P Int Payable Carrying...

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1 a) CV of note N/P 2,200,000 Int. Payable 12,757 Carrying Value 2,212,757 Total amount to be repaid Principal 2,000,000 Interest 640,000 2,640,000 PV of Prinipal 2,000,000 * .822702 = PV of Interest 640,000 * 3.545951 = date cash Int. Expense N/P 1/2/2007 12/31/2007 160,000 110,638 49,362 1/2/2007 Int. Payable N/P 12/31/2007 Int. Expense N/P Cash b) CV of N/P Note payable 2,200,000 Int. Payable 12,757 Carrying Value 2,212,757 Total amount to be repaid Principal 2,100,000 Interest 84,000 2,184,000 Date Cash Int. Expense N/P 1/2/2007 12/31/2007 21,000 - 21,000 1/2/2007 Int. Payable N/P N/P Gain on Rest. 12/31/2007 N/P cash 2 PV of principal 2,000,000 PV of interest 160,000
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Value of restructued loan Loss on Restructure date cash Int. Income 1/2/2007 12/31/2007 160,000 187,320 1/2/2007 Loss on Restructure Interest Rec. Note Rec. 12/31/2007 Cash Note Rec. Interest Rev.
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CV 2,212,757 Amont Repaying 2,640,000 Additional Interest 427,243 NO GAIN 1,645,404 (n=4, i=.05) effective interest rate 2,269,409 (n=4, i=.05) 3,914,813 CV of N/P 2,212,757 2,262,119 12,757 OR int pay
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This homework help was uploaded on 04/21/2008 for the course ACG 4133c taught by Professor Ajinka during the Spring '08 term at University of Florida.

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Quiz_2_solutions - 1 a CV of note N/P Int Payable Carrying...

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