On January 1, 2021 Hexatonic Bank extended a 2,000,000, 10% loan to XYZ Inc. Principal is due on Dec. 31, 2023 but interests are due annually at each year-end. Hexatonic Bank incurred 24,000 direct loan origination costs and 16,000 indirect loan origination costs of, and charged XYZ a 6-point nonrefundable loan origination fee.



Requirement: Compute for the carrying amount of the loan on Dec. 31, 2021

Answer rating: 100% (QA)

To calculate the carrying amount of the loan on December 31 2021 we need to first determine the ... View the full answer