Happy Mortgage Corp. is a mortgage lender. The following information relates to Happy Mortgage's portfolio of...

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Happy Mortgage Corp. is a mortgage lender. The following information relates to Happy Mortgage's portfolio of loans held for investment at December 31, 2021: Principal amount of loans at year end (excluding negative amortization) $50 million Interest earned for year $5 million Negative amortization accrued during the year $2.5 million Allowance for loan lossen at end of year 1.5% of (loan principal plus accumulated negative amortization) Accumulated negative amortization at beginning of 2021 (none of this was $4.5 milion paid during the year) 1. What is the gross amount of loans as an investment recorded on the balance sheet as at December 31, 20217 (1 mark) 2. Calculate the loan losses for the year. (2 marks) 3. What is the amount of loans heid as an investment net of losses on the balance sheet as at December 31, 20217 (2 marks) For the toolbar, press ALT F10 PC) or ALT-FNF10 (Mac BIVS Paragraph Arial 10pt ... 52EE x X, 8 Ox T7 田出用回田旺国 !!! Happy Mortgage Corp. is a mortgage lender. The following information relates to Happy Mortgage's portfolio of loans held for investment at December 31, 2021: Principal amount of loans at year end (excluding negative amortization) $50 million Interest earned for year $5 million Negative amortization accrued during the year $2.5 million Allowance for loan lossen at end of year 1.5% of (loan principal plus accumulated negative amortization) Accumulated negative amortization at beginning of 2021 (none of this was $4.5 milion paid during the year) 1. What is the gross amount of loans as an investment recorded on the balance sheet as at December 31, 20217 (1 mark) 2. Calculate the loan losses for the year. (2 marks) 3. What is the amount of loans heid as an investment net of losses on the balance sheet as at December 31, 20217 (2 marks) For the toolbar, press ALT F10 PC) or ALT-FNF10 (Mac BIVS Paragraph Arial 10pt ... 52EE x X, 8 Ox T7 田出用回田旺国 !!!

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Amounts are in Negative amortization of a loan means the ... View the full answer