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On December 31, 2020, Blue Company signed a $1,023,100 note to Kingbird Bank. The market...

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Accounting

On December 31, 2020, Blue Company signed a $1,023,100 note to Kingbird Bank. The market interest rate at that time was 11%. The stated interest rate on the note was 9%, payable annually. The note matures in 5 years. Unfortunately, because of lower sales, Blues financial situation worsened. On December 31, 2022, Kingbird Bank determined that it was probable that the company would pay back only $613,860 of the principal at maturity. However, it was considered likely that interest would continue to be paid, based on the $1,023,100 loan. Determine the amount of cash Blue received from the loan on December 31, 2020. (Round present value factors to 5 decimal places, e.g. 0.52513 and final answer to 0 decimal places, e.g. 5,275.)

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