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pls answer Problem 7-8(IAA) Kalibo Bank loaned P5,000,000 to Caticlan Company on January 1,2022. The...

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Accounting

pls answer Problem 7-8(IAA) Kalibo Bank loaned P5,000,000 to Caticlan Company on January 1,2022. 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 1,2023. Caticlan Company made the required payments during 2023 and 2024. However, during 2024 Caticlan Company began to experience financial difficulties, requiring Kalibo Bank to reassess the collectibility of the loan. On December 31,2024, Kalibo Bank has determined that the remaining principal payment will be collected but the collection of the interest is unlikely. Kalibo Bank did not accrue the interest on December 31,2024. The PV of 1 at \(8\%\) is .93 for one period, \(.86\) for two periods and \(.79\) for three periods. Required: what is the carrying amount of the loan receivable on december 21,2026?

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