Illustrative Problem

0.

Joy Company

A /R Jan . .
1 450 , 000 PV of NR ↓, 995 , 000

CS 2 700 000
, ,
(500K X 3 . 99)
- (

3 350 , 000 Int .

Income 159 , 600
,

Collections (2 150 000)

, ,
(8 % X 1 , 995 , 000)

Written OFF (40 000) ,

NR
,
12/31/24 2 , 000 , 000

SR (75 000] ,
(2 5 M
.
-

500k)
Unearned Int .

A/R ,
Dec. 31 1 0 85
, .
,
000 Income (345 400) ,

ADA (110 000) ,

1505k -
159 ,
600)

ASR (50 , 000) Carrying Amount 1 , 654 ,

600

NKV 925 000 ,

AMORTIZATION TABLE

Principal Interest Amortization CA

Dec 31 2013
.

,
1 ,
995 , 000

Dec 31 2014
.

,
500 , 000 159 600,
340 400,
1 , 654 , 600

Dec 31 2015
.
,
500 , 000 132 368, 367 632 ,
1 286 , 96
,