What is the amount of the loss on impairment

Assignment Help Accounting Basics
Reference no: EM13125026

On December 31, 2004, Packard signed a $1,600,000, 7-year note to Beehive Bank. The market rate of interest at that time was 12%. The stated interest rate on the note was 9%, payable semi-annually, on June 30 and December 31. Unfortunately, because of his excessive lifestyle and the amount of money he spent for the October 2005 Pridefest to impress his friends, Packard's financial condition worsened. As of June 30, 2006, Beehive determined that Packard would pay back only $600,000 at maturity and would pay interest based on the $600,000. Beehive uses the loan's historical effective rate to measure loan impairments. What is the amount of the loss on impairment that Beehive should recognize at June 30, 2006?

Reference no: EM13125026

Questions Cloud

Index of subgroup and coset of subgroup : Explain what the index of a subgroup and a coset of a group are. Also, prove that if N is a subgroup of a group G such that [G: N] = 2, and if "a" and "b" are elements of G,
Briefly discuss the major benefits of nafta : Discuss and explain the major provisions of the North American Free trade Area (NAFTA) agreement. Briefly discuss the major benefits of NAFTA to the U.S. economy.
Estimating the stocks price per share : The company has 10 million shares of stock outstanding. What is the best estimate of the stock's price per share?
Find the lowest income among the richest persons : Normally distributed with mean equal to 15,000 and standard deviation equal to 1000. What is the lowest income among the richest 250 persons?
What is the amount of the loss on impairment : What is the amount of the loss on impairment that Beehive should recognize at June 30, 2006?
Calculate the temperature at which the reaction changes : If delta H for the reaction is -851.5 kJ/mol at 25'C, calculate the standard free energy change, delta G for the reaction at 25'C. Calculate the temperature at which the reaction changes from spontaneous to non-spontaneous.
Compute the ending inventories under the dollar value : compute the ending inventories under the dollar value lifo method for 2011, 2012, 2013. the base period is January 1, 2011, and the beginning inventory cost at the date was $45,000. compute indexes to two decimal places.
Confidence interval of proportion of students-hate business : A study of 49 business graduates reported 42 students listed stats 100 as their least favorite class. what would be the 99.8% confidence interval of the proportion of business students who hate, hate, hate business?
Proceed until all substances have reached their equilibrium : If the reaction is allowed to proceed until all substances have reached their equilibrium concentrations, determine delta G for the reaction.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Difference between tax refund and tax benefit

What are the chances that a company will have 20 years of losses to actually use a loss carryforward (and still be in business)? How do accounting principles support holding an asset on the balance for this long?

  Time interest earned ratio

For the most recent year, Wilson Enterprises had sales of $689,000, cost of goods sold of $470,300, depreciation expense of $61,200, and additions to retained earnings of $48,560.

  Replacing the asset by using nvp methodology

The new machine will cut operating costs by $10,000 each year for the next five years. Taylor's cost of capital is 8 percent. Should the firm replace the asset? (Use NPV methodology to solve this problem)

  Cost structure of perfectly competitive firm

In the perfectly competitive industry, the market price is $25. A firm is currently producing 10,000 units of output, its average total cost is $28, its marginal cost is $20, and its average variable cost is $20.

  Income statement as income from investment

On December 31, 2010, the fair value of the Ranger stock owned by Howdy Doody had increased to $70,000. How much should Howdy Doody show in the 2011 income statement as income from this investment?

  What is the major issue involved in translation

XYZ Corporation, with a division located in Germany, must translate its financial statements from euros to U.S. dollars. What is the major issue involved in translation?

  Impacts on the quality of accounting information

Why is measurement in the context of accounting so important

  Social trends in corporate taxation

Current social trends in corporate taxation have a tremendous impact on how corporations run their business activities. For instance, tax liabilities will affect where a corporation runs its activities-in the United States or in a foreign country-..

  Question on maturity matching principle

Describe the maturity matching principle. What are the risks of not matching maturities? How would you characterize a firm that ignores the principle? Can you think of situations in which it would be advisable for an otherwise prudent firm to dev..

  Define variable and fixed costs

Define variable and fixed costs. Comment on how these costs are used to estimate future requirements. Discuss how contribution margin is used by managers for decision making.

  Prepare solutions to the construction contracts

Please prepare solutions to the following questions concerning topics covered in the first half of the course

  Partnership and corporate taxation

Glen and Michael are equal partners in Trout Enterprises, a calendar year partnership. During the year, Trout Enterprises had gross income of $400,000 and operating expenses of $220,000.

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