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Year | Contractual Cash Flows | Cash Flows Expected at December 31, 2012* | Decrease in Expected Cash Flows | ||||
Year 1 | 2012 | $ 45 | $ 45 | $ - | |||
Year 2 | 2013 | 45 | 35 | 10 | |||
Year 3 | 2014 | 45 | 35 | 10 | |||
Year 4 | 2015 | 45 | 35 | 10 | |||
Year 5 | 2016 | 1,045 | 935 | 110 | |||
Total Cash Flows | $ 1,225 | $ 1,085 | $ 140 | ||||
Net Present Value of Cash Flows | $ 1,000 | $ 800 | $ 120 |
Initial Investment (amortized cost at Jan. 1, 2012) | $ 1,000 | |||
Plus: Interest recognized to date | 45 | |||
Less: Cash collected to date | (45) | |||
Credit Loss | (120) | |||
Amortized cost basis at December 31, 2012 | $ 880 | |||
Noncredit Loss | (180) | |||
Fair value at December 31, 2012 | $ 700 |
Presentation on income statement | |||
Total other than temporary impairment | $ 300 | ||
Portion of impairment loss recognized in OCI | (180) | ||
Net other-than-temporary impairment loss recognized in earnings | $ 120 |
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