Answer with complete solutions. Coconut Bank loaned P 5,000,000 to Chocnut...
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Coconut Bank loaned P 5,000,000 to Chocnut Company on January 1, 2023. The terms of the loan require principal payments of P1,000,000 each year for 5 years plus interest at 8%. The first principal and interest payment is due on January 1, 2024. Chocnut Company made the required payments during 2024 and 2025. However, during 2025, Chocnut Company began to experience financial difficulties, requiring Coconut Bank to reassess the collectability of the loan. On December 31, 2025, Coconut Bank has determined that the remaining principal payment will be collected but the collection of the interest is unlikely. Coconut Bank did not accrue the interest on December 31, 2025. 5. What amount should be reported as loan impairment loss for 2025 ? (2pts) 6. What amount should be reported as interest income for 2026? (2pts) 7. What is the carrying amount of the loan receivable on December 31, 2026? (2pts)
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