3-4 Grow Company

(1) Amortization Table

Nominal Effective Premium Carrying Value of the

Date Interest Interest Amortization Investment, end
January 1, Year 1 1,063,394.00
December 31, Year 1 120,000.00 106,339.00 13,661.00 1,049,733.00
December 31, Year 2 120,000.00 104,973.00 15,027.00 1,034,706.00
December 31, Year 3 120,000.00 103,471.00 16,529.00 1,018,177.00

(a) Carrying value, December 31, Year 2

(b)
Sales price (600,000 x 101%)
Carrying value, Jan 1, Year 3 (1,034,706 x 6 / 10) 620,824.00
Amortization from Jan. 1 to Apr. 1, Year 3 (16,529 x 3/12 x 6/10) - 2,479.00
Loss on Sale

(c)
Jan 1 to Mar 31 (103,471 x 3 / 12)
Apr 1 to Dec 31 (103,471 x 4/10 x 9/12)
Total Interest Income for Year 3

(d) Carrying Value, December 31, Year 3 (1,018,177 x 4 / 10)

(2) (a) Interest Income (1,000,000 x 12%)

(b)
Sales Price (600,000 x 101%)
Carrying value, Jan 1, Year 2 (600,000 x 1.06)
Loss on sale

(c)
Carrying value, December 31, Year 2 (1,000,000 x 1.06)
Carrying value, December 31, Year 3 (400,000 x 1.04)

(3) (a) Carrying value, December 31, Year 2 (1,000,000 x 1.06)

(b)
Sales price
Amortized cost
Loss on sale
(c)
Jan 1 to Mar 31 (103,471 x 3 / 12)
Apr 1 to Dec 31 (103,471 x 4/10 x 9/12)
Total Interest Income for Year 3

(d)
Fair value, December 31, Year 3 (400,000 x 1.04)
Amortized cost, December 31, Year 3 (1,018,177 x 4 / 10)
Cumulative amount of unrealized gain/loss
Carrying Value of the
Investment, end
1,063,394.00
1,049,733.00
1,034,706.00
1,018,177.00

1,034,706.00

606,000.00

618,345.00
12,345.00

25,867.75
31,041.30
56,909.05

407,270.80

120,000.00

606,000.00
636,000.00
30,000.00

1,060,000.00
416,000.00

1,060,000.00

606,000.00
618,345.00
12,345.00
 25,867.75
31,041.30
56,909.05

416,000.00
407,270.80
8,729.20