(Answered) On december 31 2017 buffalo company signed a 1137500 note

Accounting

On December 31, 2017, Buffalo Company signed a $1,137,500 note to Carla Bank. The market interest rate at that time was 12%. The stated interest rate on the note was 10%, payable annually. The note matures in 5 years. Unfortunately, because of lower sales, Buffalo's financial situation worsened. On December 31, 2019, Carla Bank determined that it was probable that the company would pay back only $682,500 of the principal at maturity. However, it was considered likely that interest would continue to be paid, based on the $1,137,500 loan.

Determine the amount of cash Buffalo received from the loan on December 31, 2017.

Prepare a note amortization schedule for Carla Bank up to December 31, 2019.

Determine the loss on impairment that Carla Bank should recognize on December 31, 2019.

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