AIN’T NO MOUNTAIN HIGH ENOUGH has a note receivable from CLIMB EVERY MOUNTAIN (CEM). CEM is experiencing a great financial crisis and has negotiated for a restructuring of its note with a face amount of ₱800,000, and accrued interest of ₱88,000, based on an interest rate of 11%. The note is due today. CEM asked that the principal and accrued interest be paid one-time after two years. Only 2% of interest will be collected yearly moving forward. An allowance for bad debts of ₱20,000 relates to this note. How much is the impairment loss? Group of answer choices
116,865
156,865
