Please do not give image format and solve all required EQUITY SWAPOn Jan 01, 20x1, JECK Co. settled a 1,000,000 loan payable byissuing to the lender 20,000 shares with par value of 50 pesosper share.Case A: Assuming the fair value of the shares are selling at 110pesos per share on Jan. 01, 20x1.a. How much is the gain or loss on the extinguishmentb. Prepare 1 compound journal entry for this transaction.Case B: Assuming the fair value of the shares are not readilydeterminable. The loan pays an annual interest of 12% at eachyear end and has a remining term of 3 years. The prevailingmarket rate for similar debt on Jan 01, 20x1 is 10%a. How much is the gain or loss on the extinguishmentb. Prepare 1 compound journal entry for this transaction.

The fair value of assets, liabilities, and common stock is an arm's length price to which two…

Answered: EQUITY SWAP On Jan 01, 20x1, JECK Co.…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter15: Shareholders’ Equity: Capital Contributions And Distributions

Section: Chapter Questions

Problem 21E

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