(Answered) On december 1 year 1 money co gave home co a 200000 11 loan

Accounting

On December 1, year 1, Money Co. gave Home Co. a $200,000, 11% loan. Money paid proceeds of $194,000 after the deduction of a $6,000 nonrefundable loan origination fee.

Principal and interest are due in sixty monthly installments of $4,310, beginning January 1, year 2. The repayments yield an effective interest rate of 11% at a present value of $200,000 and 12.4% at a present value of $194,000.

What amount of income from this loan should Money report in its year 1 income statement?

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