ayment on its long-term note of P6,000,000 due on December 31, xtreme financial pressure and is in default in meeting interest On December 31, 2019, 019. The interest rate is 10% payable every December 31. a an agreement with the creditor, Guimaras Corporation obtained ne following changes in the terms of the note: The accrued interest of P600,000 on December 31, 2019 is forgiven. The new interest rate is 12%, which approximates the prevailing rate of interest for similar obligation at the time of the restructuring. The new date of maturity is December 31, 2024. That is Guimaras Corporation's gain on debt restructuring? Cound of present value factors to three decimal points) P1,032,720 P 602,400 P 151,200 P O
ayment on its long-term note of P6,000,000 due on December 31, xtreme financial pressure and is in default in meeting interest On December 31, 2019, 019. The interest rate is 10% payable every December 31. a an agreement with the creditor, Guimaras Corporation obtained ne following changes in the terms of the note: The accrued interest of P600,000 on December 31, 2019 is forgiven. The new interest rate is 12%, which approximates the prevailing rate of interest for similar obligation at the time of the restructuring. The new date of maturity is December 31, 2024. That is Guimaras Corporation's gain on debt restructuring? Cound of present value factors to three decimal points) P1,032,720 P 602,400 P 151,200 P O
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 30E
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