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Fair value
|
Percentage of total fair value
|
Allocated carrying value
|
|
Participating interest sold
|
$55
|
50%
|
$49
|
Participating interest retained
|
55
|
50%
|
49
|
Total
|
$110
|
100%
|
$98
|
Dr. Cash
|
$55
|
||
Dr. Deferred loan fees
|
$1
|
||
Cr. Loan
|
$50
|
||
Cr. Gain on sale
|
$6
|
Dr. Cash
|
$55
|
||
Dr. Beneficial interest in loan
|
$55
|
||
Dr. Deferred loan fees
|
$2
|
||
Cr. Loan
|
$100
|
||
Cr. Gain on sale
|
$12
|
Definition from ASC 860-10-20:
Item
|
Fair value
|
||
Cash
|
$940,000
|
||
Beneficial interest
|
$110,000
|
||
Call option
|
$2,000
|
||
Servicing asset
|
$30,000
|
||
Recourse obligation
|
$20,000
|
Cash
|
$940,000
|
|
Plus: beneficial interest
|
110,000
|
|
Plus: call option
|
2,000
|
|
Plus: servicing asset
|
30,000
|
|
Less: recourse obligation
|
(20,000)
|
|
Net proceeds
|
$1,062,000
|
|
Less: carrying amount of loans sold
|
(1,000,000)
|
|
Gain on sale
|
$62,000
|
Dr. Cash
|
$940,000
|
||
Dr. Call option
|
$2,000
|
||
Dr. Beneficial interest
|
$110,000
|
||
Dr. Servicing asset
|
$30,000
|
||
Cr. Loans
|
$1,000,000
|
||
Cr. Recourse obligation
|
$20,000
|
||
Cr. Gain on sale
|
$62,000
|
Item
|
Fair value
|
||
Cash
|
$980,000
|
||
Participating interest retained
|
$110,000
|
||
Servicing asset
|
$10,000
|
Fair value |
Percentage of total fair value (nearest whole percent) |
Allocated carrying value |
|
Participating interest sold
|
$980,000
|
90%
|
$900,000
|
Participating interest retained
|
110,000
|
10%
|
100,000
|
Total
|
$1,090,000
|
100%
|
$1,000,000
|
Cash
|
$980,000
|
|
Plus: servicing asset
|
10,000
|
|
Proceeds
|
$990,000
|
|
Less: allocated carrying amount of the interest sold
|
(900,000)
|
|
Gain on sale
|
$90,000
|
Dr. Cash
|
$980,000
|
|
Dr. Servicing asset
|
$10,000
|
|
Cr. Loan
|
$900,000
|
|
Cr. Gain on sale
|
$90,000
|
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