ABC Company has outstanding P 20,500,000 (20,000,000 face value and 500,000 interest payable) note payable to DEF Company on December 31,2020 which is also the due date of this liability.Because of financial difficulties, ABC Company negotiates with DEF to exchange a building with a book value of P 18,000,000. The fair value of this asset base on the market is P 19,750,000. How much is the gain on debt restructuring
ABC Company has outstanding P 20,500,000 (20,000,000 face value and 500,000 interest payable) note payable to DEF Company on December 31,2020 which is also the due date of this liability.Because of financial difficulties, ABC Company negotiates with DEF to exchange a building with a book value of P 18,000,000. The fair value of this asset base on the market is P 19,750,000. How much is the gain on debt restructuring
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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ABC Company has outstanding P 20,500,000 (20,000,000 face value and 500,000 interest payable) note payable to DEF Company on December 31,2020 which is also the due date of this liability.Because of financial difficulties, ABC Company negotiates with DEF to exchange a building with a book value of P 18,000,000. The fair value of this asset base on the market is P 19,750,000.
How much is the gain on debt restructuring?
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